Payroll Is Not Withholding Taxes?

The most common cause of Payroll not withholding taxes is setting the Tax Settings incorrectly in the Payroll Setup.

To Correct This Problem:

  1. Be sure you have checked the appropriate boxes.

  2. Be sure you have entered the appropriate Percentage  in the Percent fields.

  3. Be sure you have entered the correct Wage Base in the Wage Base field.

Note: If you are not sure of the correct Percentage or Wage Base, check with your accountant or check the Circular E (the tax guide for employers).