ezPaycheck Troubleshooting: 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. Please make sure your select the correct the state tax option when set up the employee.

2. If one employee claimed high number of exemptions, it will lower his state tax.
3. 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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- Calculate Federal & State Taxes, Print Paychecks, Print W2, W3, 941, 943 and 940.
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Related Links:
ezPaycheck Quick Start GuideHow a add a new company accountHow to handle both employees and contractorsHow to handle restaurant tipsHow to add a custom deduction and withhold it from each paycheck automaticallyHow to handle local taxesHow 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-pageHow to print paycheck on blank stockHow to print paycheck on pre-printed checksHow to print paycheck with company logoHow to adjust check printing positionSample PaychecksDetermine a Company's Name for e-Filing
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