In payroll Tax the tax is already deducted from bank,but still in payroll tax setting the same is shown to be paid in next month.

@handmassociates2  Sure.

QuickBooks now withdraws money in the amount of your payroll taxes with respect to each payroll you run.

Then, it sits in QuickBooks' bank account, presumably drawing interest for them, until it's time to actually pay the payroll taxes for the month/quarter/year.

Fun, right?

I'd like to share some insights into the tax withdrawal process QuickBooks Online (QBO) Payroll, @handmassociates2.
 

QBO Payroll have implemented a new system where taxes will be withdrawn each time payroll is processed or when taxes need to be updated. Instead of automatically withdrawing and paying payroll taxes when due, aiming to streamline payroll tax management for users. Please know that the deducted funds are securely placed in a holding account. It will remain there until it's time to remit the payments to the respective tax agencies, ensuring timely compliance.
 

Furthermore, to keep track of all deductions and review previous withdrawals, you can access comprehensive records in the Payroll tax Center.
 

For more information about these updates, you can refer to this article: Changes with automated tax withdrawals in QuickBooks Online.
 

Feel free to reach out in the comments if have follow up questions about how automated tax withdrawals work in QBO Payroll. We're committed to addressing any queries you may have.