Federal tax not deducted

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?

9,043 Views
Message 1 of 7
Report
6 REPLIES 6

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.  

9,021 Views
Message 2 of 7
Report

I did, no federal tax is listed.

9,014 Views
Message 3 of 7
Report

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

9,012 Views
Message 4 of 7
Report

They are both employees, no contractors. 

9,002 Views
Message 5 of 7
Report

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.

9,001 Views
Message 6 of 7
Report
Alumni

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. 

8,996 Views
Message 7 of 7
Report