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ezPaycheck Trouble Shooting: State Tax Issue

ezPaycheck payroll software makes it easy to calculate federal and state payroll tax.

Issue #1: State Income Tax Is $0

Two reason can caused the such state tax issue:

1. The employee's income is not high enough to withhold state income tax or this employee claimed high number of exemptions
You can test it easily by increasing the payment.

2. On employee set up screen, the "State income tax" option is unchecked by mistake. You can edit employee tax option to solve this issue.

Issue #2: Wrong State Tax Calculation

1. If one employee claimed high number of exemptions, it will lower his state tax.

2. Such issue may be caused by pre-tax deduction. When you generate a paycheck, you can view the summary part. If the Taxable Income is lower than the Gross Income, that means you set up some deduction that is exempt from federal and state taxes.

Solution:You can review each dedution details. If the deduction is set up to be exempt from federal and state tax by mistake, please change the option. After you delete the wrong paycheck, you add new paycheck. You will see the correc federal and state tax amount.

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ezPaycheck Makes 2023 Payroll An Easy, In-House Task!

(For Windows and Mac)

  • Trusted by Thousands of New and Seasoned Clients Each Year Since 2005.
  • Calculate Federal & State Taxes, Print Paychecks, Print W2, W3, 941 and 940.
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    Related Links:

  • ezPaycheck Quick Start Guide

  • How a add a new company account

  • How to handle both employees and contractors

  • How to handle restaurant tips

  • How to add a custom deduction and withhold it from each paycheck automatically

  • How to handle local taxes

  • How to handle State Disability Insurance (SDI)

  • How to print paycheck in different formats: check-on-top, check-in-middle, check-at-bottom or 3-per-page

  • How to print paycheck on blank stock

  • How to print paycheck on pre-printed checks

  • How to print paycheck with company logo

  • How to adjust check printing position

  • Sample Paychecks