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December 26, 2025
Question

1/1/26 payroll

  • December 26, 2025
  • 1 reply
  • 5 views

Will the payroll for 1/1/26, direct deposit 12/31/25, be taxed in 2025 or 2026?

1 reply

QuickBooks Team
December 26, 2025

Welcome to the Community, 1231.


I'll provide more details below that explain which tax year your payroll for 1/1/26 will be taxed in.


In QuickBooks Online (QBO) Payroll, the tax year is determined by the paycheck date (pay date/check date), not by the date the direct deposit is deposited into the employees’ bank accounts.

 

So, if the paycheck date is 1/1/2026, QBO will report and tax that payroll in 2026, even if the direct deposit posts on 12/31/2025 due to bank holiday timing.


If you have any other questions or need help adjusting the pay date, feel free to Reply. We're here to help.