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How to Resolve Wages and Payroll Tax Calculation Errors in QuickBooks

Payroll Tax Calculation Errors in QuickBooks

With an active subscription of QuickBooks Desktop Payroll, you can leave the complex task of wages and payroll tax calculations to QuickBooks as it can automatically calculate all the taxes for you by fetching employee’s data from the Desktop app. A user’s responsibility includes keeping QuickBooks Desktop application and tax table up to date and input correct employee’s info in QuickBooks for error free tax calculation. There might be several reasons before getting an incorrect wage or payroll tax amount. In this article, we will put our focus on how to fix payroll mistakes in QuickBooks.

To get in touch with certified tax advisors call Payroll Phone Number 1.855.738.2784.


Steps to Remove Payroll Errors

There are taxes that QuickBooks calculates on percentage basis like State Disability Insurance, State Unemployment Insurance, Medicare, and Social Security. Following are the tax amount errors that you might get on your paychecks:

  1. Incorrect tax amount is appearing on the paychecks.
  2. There is no tax item listed on paychecks.
  3. The total tax amount appearing on paychecks is $0. 00.
  4. QuickBooks continues to calculate the tax amount even after the year-end.


  1. Make sure to update QuickBooks Desktop application and download the latest tax table before proceeding with the troubleshooting.
  2. We suggest you generate payroll reports every week so you can figure out common mistakes in payroll before the tax season begins.

If you are getting an amount of $0. 00

Following are the reasons you might be getting $0. 00 on paychecks:

  1. The latest tax table has updated the calculation of tax and wages of the agency.
  2. Because of the filing status and the number of allowances, the total amount that has been collected is affected.
  3. In case, you have created more paychecks than usual.
  4. Incorrect employee wages on paychecks.


  1. If you are middle in the way of generating paycheck, then revert it.
  2. Get rid of the paycheck that is not issued by you to the employee.
  3. If the paycheck has already been issued, then you need to void/cancel it.

If the annual or quarterly wage tax info is incorrect

Solution 1:

  1. Open QuickBooks Desktop application, click Employees and Payroll under Reports tab, and then select Employee Withholding.
  2. Under the Customize Report tab, choose the Columns to Display.
  3. From the Display tab choose the items and hit OK to save changes.
  4. Now check if your employees are properly set up and organized for the state, local, and federal taxes.
  5. You can double click the name of an employee to change any info under the Employee Information tab.
  6. Now under Payroll Info click Taxes and verify if employee info is correct under the Federal, State and / or Other tab.
  7. Making changes to the employee’s Subject to will not fix the error if the changes are made in the middle of the year.
  8. if the problem is still not resolved and you are wondering how to fix payroll mistakes in QuickBooks then follow the next troubleshooting step.

Solution 2:

  1. Under the QuickBooks Desktop menu click Lists and select Payroll Item List.
  2. Click twice on the Payroll Item and then click the Next button twice to open Tax Tracking window.
  3. Now check and verify that correct tax tracking is set up for every item under the list. In case if you want to edit tax tracking for an item and you are unsure how to do that then Contact Payroll Helpline Number 1.855.738.2784 for help.

Solution 3:

  1. Check and verify the rates of the items listed under the Account column of Payroll Items.
  2. If you found any mistakes, then double-click the item under the Payroll Items and then click Next for the rates.
  3. Now under the Rates window change the incorrect rates of the items and click Next to save changes.
Using Payroll Tools to find Discrepancy:

Payroll Checkup Tool:

This tool helps you review payroll items set up, tax amount, wages, and employee records and find discrepancies so that you can make required changes to them to fix errors.

Payroll Details Review Report:

With the help of this tool, you can find the root of discrepancies. This tool helps you view all the wages and tax amounts of an employee along with the transactions those are causing discrepancies in paychecks.

Hopefully, now you have figured out how to fix payroll mistakes in QuickBooks and in case if you still find discrepancies in employee’s wages and tax data while viewing the payroll detailed review report, then you need to correct such errors, in case if you have already filed the tax form, then an amendment is required to make any further changes. Here we suggest you get in touch with us at our Payroll Support Number 1.855.738.2784.

Edward Martin

Edward Martin

Edward Martin is a Technical Content Writer for our leading Accounting firm. He has over 10 years of experience in QuickBooks and Xero. He has also worked with Sage, FreshBooks, and many other software platforms. Edward’s passion for clarity, accuracy, and innovation is evident in his writing. He is well versed in how to simplify complex technical concepts and turn them into easy-to-understand content for our readers.

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