What do I need to do to correct this?
Gonna need to share a bit more information to get any helpful advice.
It sounds like your saying the bit isnt touching the wood but it is touching when it carves?
If I understand the problem correctly, the carve is running, but is only cutting air.
If so, your z zero setting is off.
If you home the machine, and then start a carve, you have to tell the x carve where the top of the material is. You do this using the probe if you have one, or by manually setting z zero to the material top surface by jogging the x carve until the bit just touches the surface and setting the z height.