thread Re: Federal tax not deducted in Archived Discussions (Read Only)

Federal tax not deducted

heavenlycolors — Tue, 03 Apr 2018 15:54:27 GMT

I ran my first payroll for 2 employees. Both are claiming zero, however no federal tax was withheld from either person, only Social Security and Medicare. Did I set something up incorrectly?

Re: Federal tax not deducted

ACAcatering — Tue, 03 Apr 2018 22:12:37 GMT

Just a quick question. When I started using square payroll, I noticed that it didn't specify that a certain tax was being taken out. I was told to look at the employee's paystub. Have you tried that? The paystubs show everything.

Re: Federal tax not deducted

heavenlycolors — Wed, 04 Apr 2018 00:40:55 GMT

I did, no federal tax is listed.

Re: Federal tax not deducted

ACAcatering — Wed, 04 Apr 2018 00:42:29 GMT

Are you sure that you don't have them listed as a 1099 employee?

Re: Federal tax not deducted

heavenlycolors — Wed, 04 Apr 2018 21:41:19 GMT

They are both employees, no contractors.

Re: Federal tax not deducted

heavenlycolors — Wed, 04 Apr 2018 21:45:29 GMT

The only thing that I can see that may have caused an issue was I paid both as "additional pay" because they are commission based. I paid nothing on an hourly or salary rate.

Re: Federal tax not deducted

Chad — Fri, 06 Apr 2018 00:02:38 GMT

Hello @heavenlycolors! Even if you ran it as "additional pay", all taxes would be withheld according to the employees withholding info.

In this case I recommend reaching out to our Payroll Support Team so they can take a closer look at your account and make sure everything is in order.