Just ran my first payroll, no Federal withheld?

[Bodacious]

I just ran the first payroll and only 1 EE had EE Federal Withholding.  Why?

[isabelle · Accepted solution]

Hello @Bodacious!

Thanks for posting in the Seller Community.

Income tax calculations are complicated and can vary from paycheck to paycheck based on a number of factors. These factors include:

1. Employee withholdings and allowances (as indicated by the employee on Form W-4).
2. The length of the payroll period - weekly, semi-monthly, or bi-weekly. In addition, the period length for a semi-weekly payroll schedule can range from 13 - 16 days. Note: When sending an Off-Cycle Payment, make sure to adjust the pay period accordingly, as taxes are calculated differently on a dollar amount paid out for a 2 week period as opposed to a 2 month period.
3. The employee gross pay amount, as certain thresholds must be met before certain taxes are withheld from a paycheck.

We have full confidence that our tax calculations are accurate. If you would like to manually calculate federal income tax withholding, you can do so by referencing Publication 15, Circular E. The IRS has also released an Income Tax Withholding Assistant for Employers.

You can also use a paycheck calculator, such as PaycheckCity to calculate the tax amounts.

If you have any questions about this, please give our Support Team a call.