Showing results for 
Search instead for 
Did you mean: 

Top 5- Year End Paying Taxes Questions

0 0 588

SA Community templates-66.png


Hello and welcome to another Top 5! This time around, we will be focusing on more year-end questions regarding Paying taxes; such as how to correct the state tax credit for unemployment taxes, deleting a sales tax payment, and seeing past sales tax payments. So make sure to grab your favorite drink and keep reading if you’re interested in hearing more!

1. How can I correct the state tax credit for unemployment taxes?

Great question!
To correct this you can take these steps on what to do when a taxing agency withholds a portion of the refund for a separate balance due:
  1. Go to the Employees menu and select Payroll Taxes and Liabilities. Then, click Deposit Refund Liabilities.
  2. Click the name of the vendor who submitted the refund check.
  3. From the Refund Date field, enter the deposit date and then, input the first day of the pay period that the refund affects in the For Period Beginning section.
  4. Choose how you want QuickBooks to handle the deposit.
  5. From the Taxes and Liabilities section, select the payroll item/s affected by the refund and enter the positive amount. Then, click OK.
  6. If you're using Basic, Standard, or Enhanced Payroll for US. Or the payroll offering for Canada, the process is complete.
  7. If you have Assisted Payroll, proceed to step 11 of this article for the next step: Record a payroll liability refund check.
  8. Make sure to enter the full amount of the tax refund in the Deposit total field.
  9. Then, to account for the portion that was withheld, enter a Liability Adjustment to reduce the liability.
For more info on this process, make sure to check out this link: Record a payroll liability refund check.
Also, it's recommended to create a backup copy first before making any changes to your company file. This is to ensure you have the original details that you can restore at any time in case of data loss or damage.
That should do it!

2. We owe state and federal payroll taxes for last year. How do I add the interest and penalties in Qui...

I’ll show you how! You'll want to manually record past due state and federal payroll taxes in QuickBooks Online.
This is because the system won't allow you to pay them electronically.
Once you’ve done that, you can create an expense to record the interest and penalties. This will separately record those payments from your taxes.
You can do this by:
  1. Click + New, then pick Expense.
  2. In the Payee field, specify a vendor.
  3. Select the Payment account to which to credit this expense.
  4. Enter the date of purchase in the Payment date field and specify the Payment method for the expense.
  5. Use the Category details section to record the interest and penalties.
  6. In the Category field, select an expense account to track those payments.



  1. (Optional) Enter a description of the expense.
  2. Enter the amount.
  3. Select Save and Close.
Now that you’ve moved over to QBO, we no longer have access to your account so you'll need to make sure to log in and file your taxes.
For more info, you can check out this article on fixing underpaid payroll taxes. It provides options for submitting a late tax payment or penalty in QuickBooks.

3. Can I delete a Sales tax payment and recreate it?

Yes! You can delete the sales tax payments from QuickBooks Desktop. There are two ways to do this and I'm happy to show you the process for each one.
The first method is to go to the vendor's profile (in charge of collecting your sales taxes) and delete the tax payments from there. Here's how:
  1. Go to Vendors, then select Vendor Center.
  2. Locate the vendor that collects your sales taxes.
  3. Under the Transactions tab, find and open the Sales Tax Payment transaction.
  4. Click Delete.
  5. On the confirmation window, click OK.



The second method is to go to your Chart of Accounts and open the bank register where you paid the taxes. Here's how:
  1. Go to Lists, then select Chart of Accounts.
  2. Find and open the bank register (where you paid the sales taxes).
  3. Locate and open the TAXPMT Type.
  4. Click Delete.
  5. On the confirmation window, click OK.



You’re now set!
For more help in managing your sales taxes, especially the adjustments, you can take a look at this article on Setting up sales tax in QuickBooks Desktop.
Also, you might want to reach out to an accountant if you want to delete the tax payments in a closed accounting period. Doing this will affect your books, and they have an idea of how to handle the corrections.

4. How can I see all my past sales tax payments in QuickBooks Desktop?

I’m glad you asked!
All you have to do is follow these steps:
  1. Click Taxes, and then Sales Tax at the top.
  2. Under Recent Sales Tax Payments, then click View All.
  3. The Transaction Detail report will open that lists all your sales tax payments. Just click Customize to adjust the date range.
  4. Click Run report.
To view all sales tax owed, you can click the View Report button.
Please check out this helpful article for more information: Manage sales tax payments

5. All of my income is reported in Quickbooks, how do I avoid paying taxes on 1099-MISC twice in my ...

I got you covered!
For your 1099, you'll need to tag those transactions as Personal income to avoid being taxed twice. For your W-2, you'll need to record it in your tax profile so the system will not triple-calculate the taxes.
You’ll also want to make sure you've categorized all the transactions correctly and recorded those on your Tax profile.
To know more about this process, I'm leaving you some articles to help guide you in filing 1099 and W-2 in QuickBooks Self-Employed:
That should do it!
That’s all we have for today! I hope you got some new helpful information out of these questions and feel more confident when it comes to paying taxes. If you have any other questions, please let us know here in the community and we’re happy to help get those taken care of.

Need to get in touch?

Contact us