I ran my first payroll and noticed that qbo calculated the payroll taxes but they were not deducted from the bank account when the paycheck was. When will qbo withdraw?

I’m glad to know that you have successfully run your first payroll, kathryn-skinserv.

I understand how important it is for your business for QuickBooks Online (QBO) to deduct payroll taxes and paychecks at the same time. This enables you to easily track them in your account. Allow me to share some information about tax payment processing times.

When you activate your E-services, make sure to submit your tax payments and filings two, three, or five days before the due date (known as a lead time). That’s why the payroll service didn’t deduct your payroll taxes.

If you’re unable to send them on time, taxes may be late. Thus, penalties and interest may apply. Or, you may not be able to submit them through payroll (SUI). Let me share the processing time for each tax payment type:

ACH Debit:

• Intuit sends the tax payment information to the agency, then the agency withdraws the money from the customer’s payroll bank account.
• Funds are usually withdrawn on the payment date, but the agency may withdraw them at any time.
• If a customer NSFs, they owe the agency. Intuit may or may not be notified.

ACH Credit:

• Intuit pays the agency on the customer's behalf, then withdraws the money from the customer’s payroll bank account to recover the funds.
• Funds are usually withdrawn one day after the payment was submitted.
• If a customer NSFs, they owe Intuit. Customers are always notified.
• Funds are usually withdrawn on the payment date, but the agency may withdraw them at any time.
• If a customer NSFs, they owe the agency. Intuit may or may not be notified.

For additional resources, these articles cover all the details about the processing time for federal and tax payments, as well as filing your payroll forms: 

• Manage automatic tax payments and form
• Pay and file payroll taxes and forms

You can also look through our online articles to help you get started on your payroll tasks right away. From there, you'll find topics such as taxes, employee records management, and handling payroll forms, to name a few.

Reach out to me again if you have other payroll-related concerns or questions about QuickBooks. I'm always willing to assist you in making your business run smoothly. Have a wonderful weekend.

QB Desktop Payroll Assisted would deduct a lump sum of the gross wages payroll amount. It would keep the taxes in an account on their end, then pay our taxes with that money they had taken out on payroll day when it was time to file. Now, each employee has a direct deposit net pay for each pay period and a separate IRS and state taxes monthly, quarterly and yearly deduction. It's overwhelming, especially if it used to be so plain and simple. Can QBO Payroll Elite withdrawal the gross wage total for the pay period and store it in an account like QB Desktop Payroll Assisted does?

Hi CMorales17,

Welcome to the Community. Let me share some information about QuickBooks Elite Payroll for the Online version.

The withdrawal in the Online version will only depend on the payroll setup of your account. Right now, a direct way to deduct the gross wage is unavailable. I recommend reviewing your payroll preferences to check the associated accounts. 

Also, you can manage your QuickBooks Online subscription, whether you need to update the card on file, change your subscription, or view your billing history. Here's the link: Manage billing, payment, and subscription info in QuickBooks Online.

Drop me a comment below if you have any other questions. We'll be happy to help you some more. Have a great day.