QuickBooks has aided accountants in streamlining payroll andtaxes. At times, there may be a scenario wherein QuickBookspayroll is not taking out taxes. A major cause could be a mis-adjustment ofthe deduction or incorrect payroll calculation preferences. This article will make an attempt to apprise you of the multiple methods to solve this error in the easiest possible way. So, keep reading.
                       

Method 1: Check to see if a payroll item for a deduction is set to calculatebased on Net or Gross

The steps to get a confirmation of how a setting is beingconfigured to calculate on the basis of Net o gross are:

•        Click Lists, then Payroll Item List, from thetop menu bar.
•        Use the Edit Payroll Item option when youright-click the deduction you want to check.
•        When the Gross vs. Net screen appears, clickNext.
•        Make sure the choice is accurate.
•        Click Next until you reach the Finish button.
•        Press Finish.
  

Note: Depending on what the responsibility agency requires,some garnishments and other deductions may change. Refer to the agency's
guidelines for more details on how to compute this specific deduction.

•         To see if the sequence of the payroll items ishaving an impact on the calculation, check it out.
•         The arrangement of the items in the OtherPayroll Items portion of the paycheck is used to compute payroll items.
•         The advance item would calculate first, and thededuction would be based on the combination of the gross earnings items plus
  the Advance.
•         To find out if the payroll item order is havingan impact on the calculation, look at the order of the payroll items on your
  paycheck.
•         It should be the first item in the Other PayrollItems section of the paycheck if you want the payroll item to compute solely on
  the employee's earnings.
•         Add the payroll item after any additions ordeductions you want to include in the calculation.
•         Check to see if the payroll item is configuredto calculate based on hours, quantity, or neither.
•         There are options for setting up payroll itemsto calculate based on quantity, hours, or neither. You must manually input the
  quantity or number of hours in the Quantity field in the Preview Paycheck box
  if a payroll item is set to compute based on quantity or hours.
  

Method 2: Alter the payroll calculation preferences

To alter the payroll item's calculation preferences:

•       nitially, hit on Lists, and then follow it upby choosing the ‘Payroll Item List’,from the top menu bar.

•       Use the ‘EditPayroll Item’ option by right-clicking the payroll item you wish to alter.

·        When the ‘CalculateBased on Quantity’ option shows on the screen, hit on ‘Next.’

·        If this item doesn't need hours or quantity tocompute, change the setting to ‘None.’

•       Hit on ‘Next’until you reach the ‘Finish’ button.

•       Finally, hit on the ‘Finish’ button.

•       Check to see if the yearly cap got established.

•       There may be a checkmark placed besides the ‘This is an annual limit’. There is adefault limit set which the employee has reached if a payroll item has
previously calculated successfully and stopped calculating on a paycheck. To
confirm the item's configuration, follow the steps below:

•       Hit on ‘Lists’,and then follow it up by opting for the ‘PayrollItem List’ from the top menu bar.

•       Use the ‘EditPayroll Item’ option when you right-click the payroll item you wish toalter.

•       Until the Limit Type appears on the screen, hiton ‘Next.’

•       Check the accuracy of the limit in the bottombox.

•       If the limit is accurate, the payroll item forthe employee should halt computing.

•       Make sure the right option is chosen under the ‘Limit Type.’

o  Annual - Restart each year

o  Monthly - Restart each month

o  One-time limit

•         Adjust the default limit or limit type choice asnecessary.
•         To conclude the process, hit on the ‘Finish’ button.
  
  

The main endeavor of this article was to familiarize usersabout the methods to fix QuickBookspayroll not taking out taxes issue. Hopefully, the issue should berectified. If not, then contact our support team at 1-800-761-1787.