How to Fix QuickBooks Desktop not calculating payroll taxes?
There are several reasons why QuickBooks Desktop might not be calculating payroll taxes correctly: Outdated QuickBooks Desktop and Tax Tables: Solution: Go to Employees > Get Payroll Updates . Select Download Entire Update and then Update . Install the updates. Incorrect Employee Setup: Solution: Go to Employees > Employee Center . Double-click on the employee. Go to Payroll Info > Taxes . Federal: Verify Filing Status and Allowances . State: Verify state-specific tax information. Wage Limits Reached: Solution: Check if wage limits for Social Security or Medicare have been reached for the employee. Payroll Item Setup Issues: Solution: Review the setup of payroll items (e.g., wages, deductions, contributions) for accuracy. Incorrect Tax Rates: Solution: Ensure that the correct tax rates are entered in QuickBooks for federal, state, and local taxes. Data Corruption: Solution: Run the Verify and Rebuild Da...