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Level 3

How to enter payments made for 941 employers federal tax

I have QBO Essentials and am wondering the best way to record payments I've made to EFTPS in my books for quarterly 941 payroll. I'm the only owner/employee of a LLC treated as s-corp (1120s) filing so each quarter, payroll is submitted through EFTPS. Do I set up some type of "tax" expense account? Not really sure how to go about this. Any help is appreciated. 

4 Comments 4
QuickBooks Team

How to enter payments made for 941 employers federal tax

Hi, @Dru_Nasty. Thank you for reaching the Community. I'm happy to address your concern about recording tax payments in QuickBooks Online.


Recording these payments depends on the payroll subscription that you use. If you're using QuickBooks Online Payroll Core, Premium, or Elite, you can follow these steps to record your tax payment:

  1. Select Taxes, then Payroll Tax.
  2. Select the Payments tab.
  3. Review the payments listed and locate the tax you want to record a payment for.
  4. If the payment is listed, choose the option Mark as paid then select Yes, mark paid

Please take note that this will be a non-posting transaction. It will not affect the bank register, but it will clear the taxes from showing due and record the deposits.


If you're using the QuickBooks Online Payroll Enhanced, consider checking out this article: Recording prior tax payments. It also includes more information about entering tax payments made for prior tax periods.


Additionally, you can run some payroll reports in QuickBooks. This way, you can get a closer look at your business's finances and view useful information about your business and employees.


I'm just a reply away if you have other questions with entering your tax payments in QBO. Just add the details of your concerns in this thread and I'll help you out.

Level 3

How to enter payments made for 941 employers federal tax

I'm sorry I should have stated I'm not using any payroll subscription. This is manually done. I need a way to enter in qbo so that my bank debit matches balance in qb.

Level 3

How to enter payments made for 941 employers federal tax

I should have mentioned I'm not using any payroll subscription. This is all done manually I just need a way to make sure it's accounted for in my qbo so my bank acct matches up


How to enter payments made for 941 employers federal tax

Good to see you back, Dru_Nasty. Thanks for providing additional details.


You're right that you'll set up a tax expense account on your Chart of Accounts to track your payroll liabilities and expenses if you haven't made them yet. To do this, here's how:

  1. Go to the Gear icon at the top.
  2. Select Chart of Accounts.
  3. Click the New button to create a new account.
  4. Choose Expenses as the Account Type, then Payroll Expenses as the Detail Type.
  5. Enter Payroll Expenses: Taxes on the Name field.
  6. Click Save and Close.


Then, create a liability account for the Payroll Liabilities: Federal Taxes (941/944). And select Liabilities, as the account type:


Once done, you can do a Journal Entry to record the tax payment and select the account created. You can consult with your accountant or accounting professional for guidance on which account receives the debit and credit side of the transaction. Since every business structure is unique, they can help determine the correct recording.


For more information about recording your payroll tax payment, see this article: Manually enter payroll paychecks in QuickBooks Online.


Keep me posted if you have any additional questions, as I'm always here to help. Take care.

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