I have a client that has one employee.  This employee claims single and two kids.   Last year grossed $54359 and only had just over $500 taken out for Fed WH tax.   He had to pay $2400 in taxes.

This year he has grossed $5840 so far and yet only $10.67 in Fed WH has been taken out!!   I have just spent an hour and half on phone with Intuit payroll and didn't get this resolved.  Unless the employee marks Exempt....there will be Fed WH taxes taken out until they reach their cap!     Is anyone else having this issue?  What is going on?