Federal and State (CA) Income Tax Withholding
Greetings Wavers! Happy New Year! I hope your 2019 is going well so far.
I have a question regarding employee Federal and State (CA) income tax withholding
Effective January 1, 2019 - my LLC has elected to be taxed as an S Corp. This year, I have an employee (which is me!). I've decided to use Payroll by Wave in order to take care of all the Payroll Taxes, etc. Recently, I've already ran two (2) payrolls (I have a twice-a-month schedule for my payroll). I noticed that both payrolls are not withholding any Federal or State (CA) income taxes. They are currently at $0.00. Any reason why it's not withholding any amount at all? Currently, my rate for these income taxes should be at 10% for Federal Income Tax Withholding and 1% fo State (CA) Income Tax Withholding.
My question then is this: How come Wave is not withholding any income taxes when I run and approve my payroll? How does it work? Is this normal? If it's not withholding any income tax, do I need to do it manually?
Let me know if you need further details with my situation.
Thank you in advance Wavers!