How to Fix QuickBooks not Calculating Payroll Taxes ?


Gone are the times when payroll was a daunting task for HR personnel. It is now as easy as operating a computer. Today many users are working on QuickBooks. They might face some technical glitches like QuickBooks not calculating payroll taxes on its own. It’s an error that can arise due to several known and unknown reasons. For more help and support avail QuickBooks Help from experts.

Why is QuickBooks not calculating payroll taxes issue?

When QuickBooks does not calculate payroll tax issues come, it restricts you from knowing about the tax. In a simpler way, it will stop showing taxes on the paycheque or show wrong calculation or show zero tax.  If you are getting a similar error, then you are in the right place. You might have tried various techniques to troubleshoot this issue. But after going through this blog you will understand what causes QuickBooks not calculating payroll taxes error and how you can resolve this issue.

Symptoms of QuickBooks Payroll Not Calculating Tax Issue

There are a few common possibilities in tax aggregates that show up in the paycheck when QB payroll inaccurately calculates taxes like FUTA, Social Security, Medical Claim, State-Based Unemployment & Disability insurance incorrect. The following possibilities are given below.

  1. The total tax sum is shown as Zero.
  2. Complete tax collected sum is not correct.
  3. The tax component is not displayed on the paycheck.
  4. The tax sum total remains due for the collection even after the annual range is achieved.

When Taxes Are Not Computing in QB Payroll

All computerized programs need regular updating for their proper and smooth functioning. Make sure that you have implemented the latest version of QuickBooks Desktop software and the latest payroll tax table updates are downloaded in your system.

Payroll Tax calculation is done on the basis of all the payroll transactions you have done using your QuickBooks software. It is important to note that the software is configured properly. All the payroll components are working properly because a minor issue can cause huge discrepancies.

QuickBooks experts provide advisory at the time of installation make sure you follow that advisory on a regular basis and run your payroll reports on a regular basis (monthly) so that you can compare your payroll data anytime whenever QuickBooks not calculating payroll taxes issue is caused.

Getting Tax calculation errors while generating a paycheck?

If you are getting the error in tax calculation only on a particular paycheck, you can follow the steps below to understand the issue more precisely.

If you are getting an unusual amount different from others or a zero, this doesn’t indicate that QuickBooks is performing inaccurate calculations. Sometimes, it might mean that QuickBooks is working absolutely fine on the basis of the data you provided to the system. You might want to bring the points stated below into consideration.

  • The Federal and the State Income Tax is calculated on the following basis:
  1. Agency’s wage and tax calculation table is upgraded by the latest payroll Tax Table.
  2. The filing status and allowance total number also impact the calculation.
  3. Discrepancies in the regularity of payment.

Solutions to fix paycheck with the incorrect calculation

Follow the given step by step guide given below-

  • If the QuickBooks payroll is still not calculating payroll taxes accurately, you might need to update the software and the payroll tax table.

QuickBooks generally self detects if there are updates in the payroll tax table and adds them to the next update. So we recommend you check payroll updates and the latest tax table. It might seem complex but the process is very simple and takes a few minutes only-

  1. Check the updated Tax table: To check the recently updated tax table, visit the Payroll Support window. Check the News & Updates pane at the left of your QuickBooks Payroll software and check the summary for the latest payroll update.
  2. In the QuickBooks software desktop version, go to Employees > Get Payroll Updates and check the version of your tax table. The first line in the Get Payroll Updates window, “You are using tax table version: ******,” lists the tax table version.
  3. Update your payroll tax table before going through the whole processes given below to troubleshoot QuickBooks not calculating payroll taxes issue:
    • Return a paycheck while generating one.
    • If you have already dispensed a paycheck then you have to make it annual. When you make changes in a paycheck, a minor inconsistency in the net sum total can be calibrated on the same payroll.

Still, facing QuickBooks not calculating payroll taxes issues?

After applying the above solution if the QuickBooks is not calculating payroll taxes problem still exists. Do not fret. Our QuickBooks Payroll support team is always there to assist you with these issues and resolve them in just a few minutes. Our years of experience can help you fight these issues and never get stuck. Though we are sure that the method above can surely help you.