Issue
- I have an employee with no taxes being deducted; what happened?
- Why would taxes not be deducted for an employee?
Environment:
- Push Web App
Resolution
There are some reasons why an employee might not be appearing on the scheduler.
- Contractor Status: In the Push, there are two employee statuses, and when an employee is set up as a Contractor, the system does not deduct taxes, and the requirement is on the Contractor to do so.
- Employee Profile: Under the employee's profile is a Tax Setup section. Employees can be set up to be tax-exempt, which means no taxes will be deducted from an employee's pay. You can use this article on How To Edit An Employee's Information to update this.
- Annual Contributions: In Canada, employees have a maximum annual contribution for Employers' Insurance and Canadian Pension Plan; please refer to CRA for guidance. Once these maximum contributions are reached, Push will automatically stop deducting these taxes when the threshold reached.
- Income Tax Threshold: Employees who don't have enough Gross Earnings in the pay period will not have Income taxes reduced as the total earnings do not meet the threshold for income tax.
- Negative Earning or Deduction: Under Earnings and Deduction, adding a negative deduction will offset the taxes and reduce them based on the negative amount on the deduction. This article walks you through how to search for these deductions, How To View, Edit, Search And Filter Previous Earnings and Deductions.
- Invalid Tax Setup (US): A Tax Setup section is under the employee's profile. Employees can be set up to have the incorrect tax setup, which means the incorrect taxes will be deducted from an employee's pay. You can use this article on How To Edit An Employee's Information to update this.
Additional Information
If Canadian users are still determining if the correct taxes are being deducted, you can use the CRA Calculator to input the employees' earnings and verify the taxes against the CRA's tax tables.
We recommend always running the Employee Information Report before your first payroll to verify and employees tax setup. How To Run An Employee Information Report
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