Hi there, AnneB8. Thanks for reaching out to the Community forum and providing detailed information.
I completely understand how it feels to be told that you need to investigate and resolve this on your own, especially since you're using a service you trust to handle your payroll accurately. Let me provide some clarification and guidance to help you move forward.
The QuickBooks Tax Holding Account is part of an update designed to improve payroll accounting accuracy. Essentially, this account acts as temporary storage for tax funds we’ve collected but haven’t yet sent to the tax agency. When the agency is paid, the balance in this holding account moves out, and your tax liability decreases accordingly. This system helps to keep your books organized, especially in cases where payroll corrections are necessary.
That said, if your balances are not clearing as expected, it could be due to one of two reasons: either the tax payment hasn’t been made yet, or the payment was made but hasn’t been properly recorded or reflected in QBO.
I suggest reaching out to our Live Support Team again and requesting a review of your tax payment history for October. They have the tools to check it and should be able to provide details about why the balances in the Tax Holding Account and Payroll Liability Account haven't cleared.
Let me know if you need further assistance. We're here to help.
