New York Withholding Payments

Thanks for reaching out to the Community, Rbond143. I appreciate you reviewing our article about this topic.

If you're assigned Quarterly Frequency for Withholding by the New York Department of Revenue, your payments will be made Quarterly with the NYS-45 for payrolls where your total accumulated tax withheld is less than $700.00.

In the event you accrue $700.00 or more in withholding liabilities,  they'll need to be paid within 5 business days. You can make your initial payment using Quarterly Frequency. After doing so, you have to change the Deposit Frequency to 5 day for the rest of your Quarter. When doing so, be sure to use the same paycheck date for your beginning and ending dates of the filing period.

You'll also be able to find many detailed resources about using QuickBooks in our help article archives.

If there's any additional questions, I'm just a post away. Have an awesome Thursday!

Will there be a problem if I leave the settings on "5 days" and just watch when it accrues to $700? Or do I change it back to Quarterly? Like, now that I am in the next quarter, my understanding is that I am waiting for the witholdings to accrue to $700 again before I pay. And then after that I need to pay at the end of the quarter again. The changing of the settings is what I am frustrated with. This is inefficient. This just started when we got raises in July, that the witholdings hit $700 before the end of the quarter. (Also, why does NYS have such a stupid law, but that's not QuickBooks fault.)

Welcome back, Rbond143.

I'll also feel frustrated since you have to change the deposit frequency accumulated tax withheld to $700 or more. However, this is mandated by NYS that you need to change it to 5 day for the rest of the Quarter.

Here's how:

1. Go to Employees, and select Payroll Center.
2. Select the Pay Liabilities tab.  From Other Activities select Change Payment Method.
3. In the QuickBooks Payroll Setup, select Schedule payments.
4. Select the tax liability you want to set up a schedule for.
5. Select Edit.
6. From the Payment frequency  ▼ drop-down, select your schedule.
7. Click Next, then Finish.
    

Set up a payment schedule to keep track of when your taxes are due.  You can also set up a payment schedule for your state taxes and non-tax liabilities.

I'm adding these articles to help pay and file your returns in QuickBooks.

• Set up state e-file and e-pay in QuickBooks Desktop Payroll Enhanced
• Pay and file payroll taxes and forms manually in QuickBooks Desktop Payroll

Stay in touch with me if you have other payroll concerns. It's always my pleasure to help you.

Thank you for the links, I guess, but no one actually read the question.

Since you wrote "change it to 5 day for the rest of the quarter", I assume that means I will change the settings back to Quarterly for the next quarter. 

I'm not sure how to ask my question a different way in order to get the answer.

Do I change it to "5 day" in March and then change it back to "quarterly" in April? Or do I change it to "5 day" and leave it like that forever?

 I can help clarify your withholding tax payment frequency, Rbond143.

The state agency assigns one of two withholding deposit schedules based on your lookback period:

• 3-day: customers must pay the balance equal to or exceeding $700 within 3 business days following the payroll the $700 threshold was met. Intuit refers to the 3-day schedule as the Electronic Funds Transfer (EFT) deposit schedule.
• 5-day: customers must pay the balance equal to or exceeding $700 within 5 business days following the payroll the $700 threshold was met.

The change will be permanent once you're assigned to the 5-day schedule. Also, New York doesn't accept payments less than $700. Customers who don't accrue $700 or more during a quarter will have the balance and payment added to the NYS-45 (SUI filing).

You can learn more about the withholding tax due dates and other tax regulations by clicking on the following links::

• Withholding tax due dates
• Withholding tax

For resources and tools to aid you in completing your payroll tasks on time, check out this reference: Payroll hub.

Fill me in if you have other payroll concerns or questions. I'll jump right back in to answer them for you. Have a great day ahead. 

I need help with this too!  I have QB Desktop Pro and QB Enhanced Payroll.  I set up the 5 day filing requirement, and the dropdown explains that withholding taxes are only deposited when the amounts equal are more than $700 in a single payroll or have accumulated over $700 at the end of a particular payroll.  However, I have a payroll filing "flag" for each pay period despite the individual bi-weekly withholding amount being less than $700 and the accumulated withholding also being less than $700.

I also spoke to the NYS Division of Taxation and Finance.  The NYS-1 must be filed and withholding taxes deposited within 5 business days of the payroll date.  This is the payroll cut-off date.  QB calculates the 5 (or 3) day period as commencing on the day that employees are actually paid.  And, QB takes 5 calendar days, not business days - which is wrong.

The NYS-1 is only filed for interim payrolls during the quarter.  If there are withholdings of less than $700 due at the end of the quarter, these may be filed and paid with NYS-45.  And here lies another problem - on Sept 30 2023, we had a payroll cut-off for bi-weekly payroll.  Payroll was processed on QB on Oct 1 and employees were paid on Oct 4.  According to the State of NY  - I have 5 business days from Sept 30 to file NYS-1 if the amount exceeds $700 or until October 31 to file and deposit these withholdings with the quarterly form NYS-45.

QB however, prepares the NYS 45 differently.  My Sept 30 payroll which was paid on Oct 4 goes toward Q4, not Q3.  And therefore the withholdings must be deposited with Form NYS-1 within 5 bus days because this is treated by QB as an interim (Q4) withholding and payroll.

I've spent hours trying to trouble shoot this with QB payroll support and have not gotten anywhere.  I am being charged penalties and interest because of these issues and they need to be addressed and fixed.  How can this be escalated and reviewed by the appropriate parties responsible for coordinating the NY State Income tax withholding for QB payroll customers?

Ditto! HR-Solutions you posted this in October 2023 and I am posting this May of 2024.  I am currently having the same issue of the pay dates with QB and NYS.  There has to be an answer.  We are paying for this "Elite" payroll software that doesn't work.  I hope the engineers of QB is reading this because you are charging a fee for a service that DOES NOT work.  If I did this in my business, you bet your bottom dollar we wouldn't be in business very long especially in NYS! 

I want to ensure you get the help you need, Shariekp.

To be sure we're on the same page, I'd like to ask for more details about the specific issue you're having with the pay dates. Is it also related to the due dates or to how QuickBooks calculates the accumulated withholding? Any extra information will help us resolve the problem.

We're looking forward to hearing from you. Have a great day!