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State income tax not withheld

Posted: Fri Nov 12, 2021 3:24 pm
by sfcas
Hello,
I did payroll for my first employee for the first time. It calculated/withheld federal taxes correctly, but it didn't calculate/withhold state income tax (I live in Utah). You can see this on the attached tax report. I have this tax enabled and it is enabled for this specific employee (see other screenshot). Utah has a blanket 4.95% tax rate regardless of income, so I know that no matter what it should be withholding that, but it is not. When I try to edit the tax rate by clicking edit and scrolling to "calculation" there is no option to change it, it just simply says "Province/State Income Tax Formula" (see other attachment). How can I get this to work?
Thanks!

Re: State income tax not withheld

Posted: Mon Nov 15, 2021 10:18 am
by shaunw
While the Utah state income tax is a flat percent, there are allowances and allowance reduction adjustments that do come into play, so its not as simple as it seems.

Does the employee have any UT - State Income Tax allowances specified in their employee tax settings?
If you changed any tax related settings, did you re-generate the pay stub afterwards?
If none of those help, what was the employees gross wages for that pay stub?