Troubleshooting QuickBooks Payroll Tax Issues: A Step-by-Step Guide
- nataliewood2127
- Apr 17
- 4 min read

As a QuickBooks desktop user you are failing to take out taxes from QuickBooks payroll and you are too much concern about this problem. Then don’t be upset with this issue we are here to resolve you are problem which occur in QuickBooks software. QuickBooks payroll subscription saves the user time and effort for calculating taxes for their business and employees. But this issue make difficult for the user to taking out taxes with QuickBooks payroll. QuickBooks payroll is not taking out taxes this error can be resolve it by many methods but before resolving you need to know first the reasons and causes of this error.
Reasons of QuickBooks payroll is not taking taxes
Outdated payroll tax tables- If the payroll tax and tables are outdated then this can leads to be problem in calculating taxes.
Low gross wages- If the employee’s gross salaries are lower than the minimum onset for tax calculation. QuickBooks might fail to deduct taxes.
Improper payroll setting- If the sequence of payroll item is incorrect or setting of payroll are not setup then cant calculate taxes.
Expired payroll subscription- Payroll taxes may not be calculated when your payroll subscription pack is expired.
Company file error- If corrupt or damaged firm files trying to calculate taxes payroll fail to support this files.
Methods to correct QuickBooks payroll is not taking out taxes
There are various methods to correct QuickBooks payroll if it not taking out taxes. Let’s discuss one by one.
Method 1- Update QuickBooks desktop
· If you are working on outdating QuickBooks software can lead various errors and difficulties in work on software. For any kind of glitches first you need to update your QuickBooks software.

· For this user have to close QuickBooks software.
· Go to the start menu of your desktop search QuickBooks desktop application and right click on the application icon.
· Choose run as administration from the drop down menu.
· Navigate to the help menu and choose update QuickBooks desktop.
· Now click on the tab option and select Mark all option and click on save button.
· Click on the Update now option and choose reset update checkbox.
· Now press Get update and your update process is start once it completed restart your computer and try to taking out taxes once.
You can also read: Ensuring Accurate Financials: Closing the Books in QuickBooks Desktop
Method 2- Incorrect year-to-date or quarter-to-date wages
If your year-to-date or quarter-to-date wages is correct then you can face the taxes issues.
· First open the QuickBooks desktop and navigate to the reports menu.
· Select employees and payroll then employee withholding.
· Now click on customize report to adjust column and display necessary items.
· Review the report for any incorrect statement.
· Now verify the employee tax setup.
· For this double click on employee name in the list of employees.
· Go to the payroll info tab and click on taxes.
· Now ensure that federal, state and other tax setting are configured correctly.
· Update all filling status and withholdings needs.
· Check the details and save it.
Method 3- Annual limit setting
If your taxes are not deducted due to the setting of annual limit then change the setting.
· Open the QuickBooks desktop navigate to the lists and payroll item list from menu bar.
· Just right click on the payroll component which you want to change and select edit payroll items.
· Scroll the screen down at the last point of the screen.
· Now ensure the checkbox at the bottom is marked.
· If the limit is correct and the changes has been exceeded, employees payroll stop calculating that limit. Now you can update the amount of the limit as needed.
· Verify once you have chosen right option of under limit type which are renews every year annual, renews every month as monthly, one time limit.
· You can select with your comforts.
· Click on finish to save the changes and complete the process.
Method 4- Repair Company files error
· Install latest version of QuickBooks tool hub from intuit website.
· Now you can see a QuickBooks tool hub icon on the screen of your desktop.
· Click on this icon and go to the installation issue tab.
· Now click on Run the QuickBooks install diagnostic tool. In this process it will take almost 20 minutes wait for that.
· After the process complete restart your computer and open the QuickBooks desktop.
· Now check your taxes are calculating or not by this method.
Conclusion-
We hope the above given methods may help you to solve QuickBooks payroll is not taking out taxes. We suggests, if you are not satisfied doing these actions on your own, you can contact to our payroll support experts for QuickBooks which gives trained experts supports. However, if you are still unable to fix such issue, then just give a call at 1-800-761-1787 to speak with our experts and let them solve the issue on your behalf.
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