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Federal Tax Withholding Showing Zero

mrskcjacksonmrskcjackson Member Posts: 1

Hello, Im a bit confused and concern with Wave showing 0.00 tax withholding when I run payroll. I'm paying myself through my business but can't get a grasp as to why this would ever happen. Has anyone else experienced this?

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    MikegMikeg Member Posts: 995 ✭✭✭

    mrskcjackson,
    First thing to check is how you have your W-4 set up. So for example, let's you are married and have set your salary at 20,000. If on the W-4 you did not include your spouses income to compute the correct withholding, the tables assume that is your only income. A married filing joint has a standard deduction of 24500 so therefore there would not be any federal tax anticipated so none withheld.
    Hard to say other wise but would be I would start. I have a client that uses Wave for payroll and there is no issue with federal withholding.

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