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sidewaysgreen-ll
Level 1

I need to let you know that I have a credit with ESD for my filing coming up.

 
1 Comment 1
Rea_M
Moderator

I need to let you know that I have a credit with ESD for my filing coming up.

Thank you for letting us know about your credit with ESD, @sidewaysgreen-ll. Recording and resolving it in QuickBooks Online Payroll (QBOP) is my priority. Let me guide you on how.

 

When you receive a valid payroll tax refund (credit), you'll have the option to apply it to the next quarterly taxes in QBOP.

 

Once you've already paid the tax liability on the previous quarter, you'll first need to enter a prior tax payment so the credit will show as an overpayment amount in QuickBooks. Then, apply the overpayment as a credit to the next quarter's payroll tax liability.

 

Here's how to record the prior tax payment:

 

  1. Go to the Taxes menu.
  2. Select Payroll Tax.
  3. Under Taxes, click Enter prior tax history.
  4. Click Add Payment.
  5. Select tax type and liability period. Then, enter the Payment DateCheck Number, and Tax Item Amount.
  6. Click OK82.PNG

 

Then, you can apply the credit to the next quarter's payroll tax liability. Please note that some state agencies won't approve of applying the overpayment to future tax liability. I'd recommend contacting them for verification. Whenever you're ready, here's how:

 

  1. Go to the Taxes menu.
  2. Select Payroll Tax.
  3. Under Taxes, click Pay Taxes
  4. On the Pay Taxes page, find the tax name under TAX TYPE.
  5. An overpayment appears on that page as a negative amount.
  6. Click Resolve Overpayment.
  7. Select Apply to a future tax payment (recommended).
  8. Click Mark as Resolved.

 

To know more as to how you can handle overpaid taxes in QBO, you can refer to this article: Resolve a payroll tax overpayment.

 

In keeping with this, I'm adding this article to further guide you in managing payroll taxes in QBOP: Taxes in QuickBooks Online Payroll. It includes topics about tax notices, form filing, and payroll liability payments, to name a few.

 

Please don't hesitate to let me know how it goes. If you have other payroll concerns and information about your ESD credit in QBOP, you can drop a comment below. I'll gladly help. Keep safe always, @sidewaysgreen-ll.

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