Resolve The QuickBooks Payroll is Not Taking Out Taxes Error

 Are you seeking a shortcut to resolve the error "QuickBooks payroll is not taking out taxes"? This must have been quite frustrating and forced you to halt processing payroll. However, the user has reached the correct place because this blog will inform them of specific troubleshooting techniques to fix this issue quickly.

The QuickBooks software is such a tool that offers a variety of advantages in the field of management of payroll. For example, it automates payroll management and guarantees prompt fulfillment of numerous payroll tasks, such as payrolls, tax filing, salary computation, and inventory.

Hence, the QuickBooks software consists of various errors. Among them, the most significant and frequently reported issue is: Paycheck’s inaccurate payroll items, payroll failure to deduct taxes from payroll check or payroll cannot calculate taxes. 

Major Causes Triggering the Error “QuickBooks payroll is not taking out taxes.”

  • The user is operating QuickBooks payroll, which is out of date

  • The total annual compensation exceeds the salary ceiling.

  • Recent gross wages of employees are low.

The Symptoms Of Quickbooks Payroll Is Not Taking Out Taxes Error

  • Incorrect calculation of the sum

  • There is no apparent total.

  • The paycheck does not include or consist of invisible components related to tax.

How to Troubleshoot the QuickBooks Error “QuickBooks payroll is not taking out taxes.”

Step 1: Update the Payroll tax table and QuickBooks to its latest update.

  1. Updating the QuickBooks

  • Open the Quickbooks software on the system.

Update QuickBooks desktop Screenshot
  • Head to the menu "Help" & choose the option "Update QuickBooks."

  • After deciding which updates you wish to download, click on the option "Get Updates."

  • Lastly, choose the option "Update" & wait until the process of updating is over. 

  1. Updating the tax table of payroll

Downloading the latest payroll tax table Screenshot


  • Select the option “Employees” and click on “Get the Payroll Updates.”

  • Tick the check box “Download Entire Update.”

  • Also, choose the option “Download latest updates.

  • Lastly, wait until the downloading of the latest update is over, and then, after it completes, shut down and again start the QB’s payroll

Step 2: Revert the Paycheck of Your Employee

This step is the most crucial as it helps fix many errors related to payroll and calculating tax. Reverting employee paychecks is a simple process that requires your careful attention to three essential steps. Which are:

  • Head towards the Employee menu

  • Choose the option “Pay employees” & click on “Scheduled Payroll.”

Pay Employees Image



  • Select the option “Resume Scheduled Payroll.”

Resume Scheduled Payroll


  • Select the option “Revert Paycheck” by right-clicking on the name of the Employee

Step 3: Correction of an Inaccurate Paycheck

The technical issue might be resolved by correcting an incorrect paycheck. All you must do is follow the below-listed instructions:

  • First, ensure that the tax table for payroll has been updated.

  • Next, return any currently generating or rolling out a paycheck

  • When creating the paycheck again, the user can adjust the deviation in the entire value in the subsequent payroll.

Step 4: Update the incorrect year-to-date or employee quarter tax information.

Correcting any incorrect employee tax information is regarded as necessary since any inaccuracy in the tax information of an employee may further exacerbate the error "QuickBooks payroll is not taking out taxes." To solve the problem, follow the steps below:

  • First, operate the employee profile and verify the "Review accuracy of tax setup."

  • After that, confirm that the settings of taxes and payroll items are shown on employees' paychecks.

  • Lastly, ensure that the listed payroll items and tax items are correct. 

Wrapping Up

The above blog has covered almost all the possible steps to fix the QuickBooks error “QuickBooks payroll is not taking out taxes.” Therefore, following the steps till the end ensures that the Error “QuickBooks payroll is not taking out taxes” will be resolved. However, if a user still faces the same Error, it is suggested to contact the QuickBooks error support team at +1-800-615-2347.

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