The payroll feature in QuickBooks has become indispensable for businesses that wish to ensure that the taxes levied on their employees are calculated fast and are accurate. This ensures that that both the employees and the employer are in good standing with the tax authorities. Tax Tables are used to organize this data and calculate taxes based on various factors. Therefore, it is necessary to keep the tax tables updated and free from any errors.
Some issues may occur while updating tax tables and it is necessary for users to know how to fix them. In this blog, we provide you the ways by which you can ensure that your tax tables are updated regularly by removing issues which are preventing you from doing so.
What are Tax tables?
Tax tables are charts showing the amount of tax employees has to pay on their income.All businesses and eligible taxpayers have to pay a certain percentage of their income as tax to the government. These taxes are based on various factors like exemptions, the filing status, deductions, credits etc. The amount of tax may also vary depending on other determinants such as age, marital status, gender etc. QuickBooks provide you with tax tables that are supported by the provincial, federal or national government and also provide you with E-filing options and tax forms.
How to Install QuickBooks Tax table updates?
- In QuickBooks, click on Employees and select Get Payroll Updates.
- Now, select Download Entire Payroll Update.
- Click the Update button. The download process will now start.
- After the download process is finished, you will receive a message “A new tax table and updates to your payroll tax forms have been installed on your Desktop.”
- Click on the OK button.
Installing a QuickBooks Tax Table from a CD
- Insert the Payroll Update CD in your computer.
- Now click on the Get Payroll Updates option.
- Then click on the Employees option and then on Get Payroll Updates.
- If a message is displayed in the Install Payroll Update window asking you to find the data file or ’update.dat’ ,then follow the instructions and click on the Browse option.
- In the Install from window, click on the drop down arrow and choose the CD drive.
- Now, form the Payroll Update Disk, choose either data or update3.dat file and click on Open.
- The, click on update.dat or update3 file.
- Click the Open button.
- Go to the Payroll Update Window and click OK.
Fixing issues related to the Payroll Tax Table
Tax Table outdated error in QuickBooks: Reasons and solutions
While trying to open the payroll tax table on QuickBooks 2021, a message may get displayed informing the user that the Payroll tax table is out of date. Any calculations that you try to do in the tax table will be shown as zero. The reasons possible for this error are-
1. The QuickBooks software installed on your system has not been updated to the latest release of the payroll tax table.
2. All computers of a particular network might not have updated the QuickBooks installed on their system to the latest tax table.
3. Some users who are using QuickBooks in a multi-user environment have also reported this error.
Now, in order to rectify this error, you have to follow the procedure mentioned below-
- Check whether you have installed the latest updates on QuickBooks and therefore using its latest version. Also make sure that all computers of a network have updated QuickBooks.
- The user needs to ensure that the product release number of QuickBooks installed on your computer matches with the product update page. You can view the release reference number by pressing the F2 key.
- The last option to fix this error is to do a backup of your company files, do a clean uninstall and then reinstall QuickBooks 2021 on your computer.
Fixing issues related to QuickBooks Tax Table update
- If the amount of tax deducted does not update even after you have installed the latest tax table update, then you have to verify if the effective date of tax table is on or after the date.
- If you have downloaded the latest tax table update, then you have to start the payroll, or you can also open and close QuickBooks Desktop so that the amount of Tax Deducted (TD) get updated.
- If the amount of Tax Deducted for an employee has been manually updated, then the previously adjusted amounts will not be affected in any manner by the new tax table.
- Check whether the employees are been allotted the basic TD1 amounts. If yes, this is because QuickBooks has automatically updated the Tax Deducted amounts for employees having the same basic amount as in the earlier tax tables.
The information provided above will make sure that you face minimal issues while working with the tax tables in QuickBooks and updating them. For organized and accurate bookkeeping in general and payroll specifically, it is important that you install tax table updates at least once every month. For any issues related to the tax tables and QuickBooks, you can contact our experts via chat or leave your query and we will get back to with a solution.
Q1. How can I receive the tax table updates in QuickBooks automatically?
Ans1. If you want to receive the tax table updates automatically then automatic update feature in QuickBooks Desktop 2021 must be turned on.
Q2. Should I have an active payroll subscription for updating the tax tables?
Ans2. Yes, an active payroll subscription is necessary if the user wishes to update the tax table.
Q3. What could be causing the ‘File Not Found’ error while trying to update payroll tax tables?
Ans3. Try to update your payroll tax tables on another computer; if you are able to do so, then there must be some issue with the hardware of the computer where you have received the error. If not, then there is a issue with the payroll update disk.
Q4. How can I check the version of the tax table in QuickBooks?
Ans4. First, click on the Employees menu and then select My Payroll Services. Click on the Tax Table Information option. Under You are Using Tax Table version; there are first three numbers which tell you the version of tax table you are using.