Hello, As of Oct 1, payroll taxes will be withdrawn from bank accounts. However, they will be paid when due. What happens to the float from these funds?

@denise105  Since you are very unlikely to get a straight answer from the staff:

The money will sit in an account, probably drawing interest for QuickBooks.

No, you don't get any of said interest.

Clever, aren't they?

Welcome to the Community space, @denise105.

Allow me to share some information about recent changes in the automated tax withdrawal process in QuickBooks Online Payroll.

We are simplifying the payroll tax management process for QuickBooks Online Payroll customers. Instead of waiting for specific tax due dates to withdraw and pay taxes, we have implemented a new system where taxes will be withdrawn every time you process payroll or when taxes need to be updated. The funds will be put in a holding account until the funds are due to the tax agencies.

Furthermore, this improved system provides greater visibility, allowing you to view the withdrawal amounts when running payroll and review previous withdrawals in the Payroll Tax Center. 

Moreover, you can check this article about the changes in automated tax withdrawals in QuickBooks Online: Changes with automated tax withdrawals in QuickBooks Online.

Also, to know how to pay and file your 941, 944, 943, 940, state, and local taxes using QuickBooks e-pay and e-file, you can scan this article: Pay and file payroll taxes and forms electronically in QuickBooks Online Payroll.

Let me know by adding a comment below if you have more questions about the automated tax withdrawal process in QuickBooks Online Payroll, @denise105. The Community is 24/7 available for your needs. Take care!

@Shania_C  Pardon, but in exactly which reality is 'doing something several times per month/quarter' simpler than 'doing something once month/quarter'?

Kindly do not urinate on our legs and tell us that it is raining.

@Shania_C 

RE: We are simplifying the payroll tax management process for QuickBooks Online Payroll customers....

...Furthermore, this improved system provides greater visibility, allowing you to view the withdrawal amounts when running payroll and review previous withdrawals in the Payroll Tax Center.

You say it's simpler, but you don't at all describe something that simpler. You says it has "greater visibility", but it has less. In fact, it seems quite a bit more difficult to understand, because now the money for the taxes is taken each payroll and so those draws are not actually tax payments. As a result, customers can't know by looking at the bank register that tax payments were actually made, the date of the payments, or the amounts of the payments. I'd rather make my own payments and know they're made than succumb to this new system.

RE: Moreover, you can check this article about the changes in automated tax withdrawals in QuickBooks Online

Why would the OP want to to that? They already know how it will work.

RE: Also, to know how to pay and file your 941, 944, 943, 940, state, and local taxes using QuickBooks e-pay and e-file, you can scan this article

What? Intuit is paying these taxes, right? That's what this whole thread is about.

I just got shown how I'll "manually" pay the taxes.  It is still as unclear as it was first announced.  I am barely surviving with payroll cost going higher... and now this is taking extra bite at it.  Are they filing these taxes or am I supposed to pay? 

Hi there, @sunnymath .

Thank you for reaching out to the QuickBooks Community with your concerns about payroll taxes and the process for paying them. I understand that managing payroll and associated costs can be challenging, especially when there are changes in how taxes are handled. Let's clarify the process and ensure you have a clear understanding of what needs to be done.

If you have QuickBooks Online Payroll Core, local taxes aren't automated. To automate those payments and filings, you'll need to upgrade to QuickBooks Online Payroll Premium or Elite. Here's how to change your taxes forms preferences:

1. Head to the Gear icon and choose Payroll Settings.
2. From the Taxes and forms section, select Edit.
3. Review or choose one of the following:
   • If you want QuickBooks to automatically pay your taxes and file your forms, select Automate taxes and forms.
   • If you want to pay and file electronically in QuickBooks, select I’ll initiate payments and filings using QuickBooks.
4. Click Save and Done. 

Additionally, you can also contact our QuickBooks Online Payroll support for additional assistance about your payroll status and tax automations.

Please feel free to leave a reply if you have additional concerns besides tax payment preferences in QuickBooks Online. I'm here to assist you always.

I think it’s very confusing… I want the settings I had before the payroll process was changed.  Everything was working just fine.  Are you saying that “what was working through Sept 30th” now needs upgrade?  If yes, please say so - and I’ll consider those options.  Otherwise, please take me back to “doing my taxes, filing my taxes, automatically”.  

Btw, i just checked my settings and it’s already checked as “Automated taxes and forms”.  But i got a notice when doing payroll earlier today — “I’ll need to manually pay taxes”.   I went to tax center and it says “everything is automated”.  I’m not sure if it’s a systemic issue. 

Your timely update here in this thread is highly appreciated, @sunnymath . I've got some information about the automated tax withdrawals

In QuickBooks Online (QBO), if the Automated Taxes and Forms is automated, there's no need for you to pay and file manually.

However, since you've mentioned that you have received a notice “I’ll need to manually pay taxes”, I'd suggest contacting our QuickBooks payroll support team to verify further and check the status on your filing. 

In addition, I'll be dropping this resource that can help you in filing your sales tax return and recording your sales tax payment which come in handy for you moving forward: File your sales tax return and record sales tax payments in QBO.

Your success is my priority, and I want you to feel confident navigating these complexities. I'm just a message away and ready to assist you in any way I can. Together, we can ensure that your payroll processes are smooth and compliant.

why does the amount of the withdrawal in the tax center NOT match the amount in the bank register?

I need to reconcile but the bank statement and the register have 2 different amounts.

please advise.

Thank you for letting us know, Huntington Catering. I will help you match the withdrawal amount in the tax center with the bank register in QuickBooks Online (QBO).

I recommend thoroughly reviewing the tax rates assigned to your payments in QuickBooks. Start by accessing the relevant payment records and checking the tax rates for accuracy. This will help you identify any potential errors that could lead to discrepancies in the amounts withdrawn for taxes within your tax center. By ensuring that all tax rates are correctly set, you can prevent any unexpected issues during tax filing and maintain accurate financial records.

Additionally, I've added this article for your future reference in case you want to adjust your sales taxes in QuickBooks: Create or delete a sales tax adjustment in QuickBooks Online.

Please keep us posted if you have other concerns or questions about taxes in QuickBooks. We'll be here to lend a helping hand.

Thanks for this info.

When I click on the transaction in the check register, it brings me to the payroll tax center showing the withdrawal. From there I have no way to change the amount that was recorded into the register! I know it stems from the change QBO made when the taxes were withdrawn before they were due. QB holding on to our funds does nothing for me (the end user) and now the tax payments are not clearly defined in the bank statement as before. It was easy to see how much which agency was paid at what time. Now I have to give up the funds, and hope the recorded entries are correct. To reconcile my statement I have to wait until QB reverses/adjusts the dollar amount in the bank & register, which may be at the end on the next month or Quarter, all the while QB is still got my funds in their bank. This new system is not very efficient, and I've been told that I am not the only client having these issues. Also, I have 2 companies on my QB account and this is happening in both companies. 

So, I would like to know how these changes are made, and why. The previous system was fine. In my other company I received 2 notices of late fees due, because 2 payments were late! I did not send in the payments, QB did. I have emailed screenshots of the notices, and my quickbooks tax payment records, have a case number, and that's it. Nobody is giving me any update, so the fee will accrue interest until it is fixed. Who gets penalized for this? QB? it is not user error, I have been doing payroll for my companies for 18 years, and in 2020, changed over to QB online from desktop. It was not my decision, I was out voted. Since then it has been difficult to get issues resolved. The texting back and forth is tedious, and many of the same questions are asked again after I have filled in the "I want to start a text message" form with the info that are asking for. I am not sure if anyone is looking at that form. The representative is working with more than 1 client, making the wait longer  and when on the phone they can only answer so much before they reach out to the"Backend Experts" but I can not speak with them directly. The rep on the phone has to wait for the "Backend" person to respond to his texted questions. He listened to my question then types it into the text, and has not written the correct words. He told me he is not allowed to have pencil and paper for fear out company info may be comprimized.

And since I'm on a roll, The W2s are accessible through QBO, however, when looking for a certain person I can not scroll through looking for their name, because they are sorted by social security numbers not by name. The SSN in the employee files only let me see the last 4 numbers, so I have to find the paper file, or digital file and get the whole number. I suppose the numeric sorting is better for quickbooks, so why did you "Hide" the SSN in their personel file? Another change that was made without notice.

Thats all for now.

Your sentiments are valid, Huntington Catering. Allow me to connect you with our Live Support Team to review your tax rates within QuickBooks Online (QBO). 

Here in the Community Team, we don't have access to the specialized tools to review your account. The QuickBooks Online (QBO) Live Support Team, they can further investigate and provide you with the best resolution.

Here are the steps on how to connect with them :

1. Click the Help icon.
2. Select the Search icon.
3. Type in a short description of your payroll concern in the search field and press the Enter key on your keyboard.
4. Click Contact Us.
5. Choose either Callback or Chat to connect with us.

To seek the exact help, I suggest reaching our support based on the schedule assigned to your subscription. Here's the best time to contact:

QuickBooks Online Payroll (Core, Premium, Elite)

• Core - Monday to Friday, 6 AM to 6 PM PT.
• Premium, Elite - any time, any day.

Meanwhile, I'll be adding this article which will give you insights on how to adjust sales taxes in QuickBooks: Edit sales tax rates in QuickBooks Online.

Accurate tax rates are essential when filling out your tax returns. This Community is Your 24/7 Strategic Partner in QuickBooks Tax Rate Navigation. Just Reply down below and I am here to assist you in any way I can.