QuickBooks not calculating Taxes while creating paychecks for Employees

Recently we just made some liabilities adjustment for the employee since then taxes are not calculating while creating paychecks

Asked on July 6, 2018 in QuickBooks Payroll.
1 Answer(s)

There are several reasons why a QuickBooks payroll item doesn’t calculate or calculates incorrectly on a paycheck. Use the below-mentioned suggestions to determine what is causing the inconsistency in your situation.

Before proceeding with any troubleshooting steps please ensure you have the active payroll subscription.


    • Verify whether or not a deduction payroll item is set to calculate based on Net or Gross:


    • Check the order of the payroll items to determine if it is affecting the calculation.


    • Verify whether the payroll item is set to calculate based on quantity, hours, or neither.


    • Verify if the annual limit set or reached.



Download Payroll Updates


    1. Click Employees on the top menu bar.


    1. Choose Get Payroll Updates.


    1. Check the box on Download Entire Update.


    1. Click on Update.


    1. When the download completed, click OK.





    • If you have a payroll subscription and have connected and validation your subscription then it should work.  


    • You have started paychecks (the employee appears yellow when you start to pay) then right click them and choose Revert Paycheck to start over (it will revert all the manual changes made on checks), which will restart calculations if you were in a mode, due to not validating, where check don’t calculate.


If you would like more information on how Resolve issue, quickly contact the QuickBooks Tech Support Phone Number.

Answered on July 17, 2018.

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