When preparing paycheck, we found that QB cannot deduct payroll tax from the paycheck. We never happened before!

Answer

Hi ericn,

There are factors that will affect the payroll deductions in QuickBooks.

First, let's check to see if you have the latest tax table update. Go to EmployeesGet Payroll Updates, and then Update.

Then, let's try pulling up a Payroll Summary report to see if the annual limit has been reached.

  1. Click Reports, and the Employees & Payroll, and then Payroll Summary.
  2. Click the Dates drop-down and change to This Calendar Year.
  3. Double-click the total amount of the payroll tax (e.g. Social Security & Medicare).
  4. Get the total Wage Base and multiply it to the tax percentage. 

If you get the same amount in the Amount column, it means you have reached the annual limit. Otherwise, create a payroll adjustment. You can find the steps here: https://community.intuit.com/articles/1437271.

Please refer to this article for details about QuickBooks Desktop calculate wages and/or payroll taxes incorrectly.

I'm always here to help if you have other questions in mind.

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