Hi there,
Thank you for reaching out to the QuickBooks Community. Managing an Installment Agreement with the IRS for missed payroll taxes is crucial for maintaining accurate financial records and ensuring compliance. I’ll guide you on how to set this up in QuickBooks Online so that your payments are properly tracked.
Firstly, create a liability account to track the owed amounts and ensure your installment payments are recorded accurately. Here's how:
- Click on the Gear icon in the upper right corner.
- Select Chart of Accounts under the Your Company section.
- Select the New button.
- Choose Other Current Liabilities as the account type.
- For the Detail Type, select Payroll Tax Payable (or a similar relevant option).
- Name the account something descriptive, like IRS Payroll Tax Installment.
To manage the installment payments, set up a recurring transaction or remind yourself to make the manual entries every payment period.
Create a Recurring Expense (Optional but recommended):
- Go to the Gear icon.
- Select Recurring Transactions.
- Click New and choose Expense as the transaction type.
Setup Recurring Expense Details:
- Name the template (e.g., “IRS Installment Payment”).
- Choose Scheduled for the type.
- Specify the interval according to your agreement (e.g., monthly).
- Set the start date and end date.
Enter Payment Details:
- Payee: Enter IRS.
- Payment Account: Choose the account you’ll be using to make the payments (e.g., Checking Account).
- Category Details: Under Category, select the liability account you created (e.g., IRS Payroll Tax Installment).
- Enter the installment amount and save the template.
Additionally, you can also check out this article for your future reference: Record tax payments made outside of QuickBooks Online Payroll.
If you have any further questions or need additional assistance during this setup process, please don’t hesitate to reach out again. We're here to help ensure your QuickBooks Online experience is smooth and accurately reflects your financial obligations.
