Paul Mayer
01-12-2004, 07:23 PM
I click Pay but don't see any Federal or State tax withheld?
The first thing to check is how much is this employee being paid? If the employee only worked a few hours this week, they may be below the limit to tax. Specially when the employee has a number of deductions.
Use the Exact Calculation method from your Circular E to work it out with a calculator if you are in doubt.
The same problem can come if you added a new employee and they are paid weekly (52 pay periods) but you've set them to be paid monthly (12 pay periods).
In this example we have a person who is married and has three exemptions, earning $1,200.00 a week, would have to pay $71.35 in Federal tax. But change that employee to monthly, there would be no tax on that pittance of $1,200.00 per month.
Another are to look is to be sure that you have not set the employee to be exempt from taxes in the employee setup pages.
Or is could be that when you enter the hours you are not clicking the Pay button down in the right hand corner of the pay entry window.
Or it could be that you edited the tax tables and didn't use the correct information like we provided.
Or the person that you are paying has so many deductions and such a small gross pay for the period that they are not at the level where any tax would be taken out.
These are the common problems weve seen when anyone ever reported that the taxes were not being calculated.
The first thing to check is how much is this employee being paid? If the employee only worked a few hours this week, they may be below the limit to tax. Specially when the employee has a number of deductions.
Use the Exact Calculation method from your Circular E to work it out with a calculator if you are in doubt.
The same problem can come if you added a new employee and they are paid weekly (52 pay periods) but you've set them to be paid monthly (12 pay periods).
In this example we have a person who is married and has three exemptions, earning $1,200.00 a week, would have to pay $71.35 in Federal tax. But change that employee to monthly, there would be no tax on that pittance of $1,200.00 per month.
Another are to look is to be sure that you have not set the employee to be exempt from taxes in the employee setup pages.
Or is could be that when you enter the hours you are not clicking the Pay button down in the right hand corner of the pay entry window.
Or it could be that you edited the tax tables and didn't use the correct information like we provided.
Or the person that you are paying has so many deductions and such a small gross pay for the period that they are not at the level where any tax would be taken out.
These are the common problems weve seen when anyone ever reported that the taxes were not being calculated.