Hello, As of Oct 1, payroll taxes will be withdrawn from bank accounts. However, they will be paid when due. What happens to the float from these funds?

@denise105  Since you are very unlikely to get a straight answer from the staff:

The money will sit in an account, probably drawing interest for QuickBooks.

No, you don't get any of said interest.

Clever, aren't they?

Welcome to the Community space, @denise105.

Allow me to share some information about recent changes in the automated tax withdrawal process in QuickBooks Online Payroll.

We are simplifying the payroll tax management process for QuickBooks Online Payroll customers. Instead of waiting for specific tax due dates to withdraw and pay taxes, we have implemented a new system where taxes will be withdrawn every time you process payroll or when taxes need to be updated. The funds will be put in a holding account until the funds are due to the tax agencies.

Furthermore, this improved system provides greater visibility, allowing you to view the withdrawal amounts when running payroll and review previous withdrawals in the Payroll Tax Center. 

Moreover, you can check this article about the changes in automated tax withdrawals in QuickBooks Online: Changes with automated tax withdrawals in QuickBooks Online.

Also, to know how to pay and file your 941, 944, 943, 940, state, and local taxes using QuickBooks e-pay and e-file, you can scan this article: Pay and file payroll taxes and forms electronically in QuickBooks Online Payroll.

Let me know by adding a comment below if you have more questions about the automated tax withdrawal process in QuickBooks Online Payroll, @denise105. The Community is 24/7 available for your needs. Take care!

@Shania_C  Pardon, but in exactly which reality is 'doing something several times per month/quarter' simpler than 'doing something once month/quarter'?

Kindly do not urinate on our legs and tell us that it is raining.

@Shania_C 

RE: We are simplifying the payroll tax management process for QuickBooks Online Payroll customers....

...Furthermore, this improved system provides greater visibility, allowing you to view the withdrawal amounts when running payroll and review previous withdrawals in the Payroll Tax Center.

You say it's simpler, but you don't at all describe something that simpler. You says it has "greater visibility", but it has less. In fact, it seems quite a bit more difficult to understand, because now the money for the taxes is taken each payroll and so those draws are not actually tax payments. As a result, customers can't know by looking at the bank register that tax payments were actually made, the date of the payments, or the amounts of the payments. I'd rather make my own payments and know they're made than succumb to this new system.

RE: Moreover, you can check this article about the changes in automated tax withdrawals in QuickBooks Online

Why would the OP want to to that? They already know how it will work.

RE: Also, to know how to pay and file your 941, 944, 943, 940, state, and local taxes using QuickBooks e-pay and e-file, you can scan this article

What? Intuit is paying these taxes, right? That's what this whole thread is about.

I just got shown how I'll "manually" pay the taxes.  It is still as unclear as it was first announced.  I am barely surviving with payroll cost going higher... and now this is taking extra bite at it.  Are they filing these taxes or am I supposed to pay? 

Hi there, @sunnymath .

Thank you for reaching out to the QuickBooks Community with your concerns about payroll taxes and the process for paying them. I understand that managing payroll and associated costs can be challenging, especially when there are changes in how taxes are handled. Let's clarify the process and ensure you have a clear understanding of what needs to be done.

If you have QuickBooks Online Payroll Core, local taxes aren't automated. To automate those payments and filings, you'll need to upgrade to QuickBooks Online Payroll Premium or Elite. Here's how to change your taxes forms preferences:

1. Head to the Gear icon and choose Payroll Settings.
2. From the Taxes and forms section, select Edit.
3. Review or choose one of the following:
   • If you want QuickBooks to automatically pay your taxes and file your forms, select Automate taxes and forms.
   • If you want to pay and file electronically in QuickBooks, select I’ll initiate payments and filings using QuickBooks.
4. Click Save and Done. 

Additionally, you can also contact our QuickBooks Online Payroll support for additional assistance about your payroll status and tax automations.

Please feel free to leave a reply if you have additional concerns besides tax payment preferences in QuickBooks Online. I'm here to assist you always.

I think it’s very confusing… I want the settings I had before the payroll process was changed.  Everything was working just fine.  Are you saying that “what was working through Sept 30th” now needs upgrade?  If yes, please say so - and I’ll consider those options.  Otherwise, please take me back to “doing my taxes, filing my taxes, automatically”.  

Btw, i just checked my settings and it’s already checked as “Automated taxes and forms”.  But i got a notice when doing payroll earlier today — “I’ll need to manually pay taxes”.   I went to tax center and it says “everything is automated”.  I’m not sure if it’s a systemic issue. 

Your timely update here in this thread is highly appreciated, @sunnymath . I've got some information about the automated tax withdrawals

In QuickBooks Online (QBO), if the Automated Taxes and Forms is automated, there's no need for you to pay and file manually.

However, since you've mentioned that you have received a notice “I’ll need to manually pay taxes”, I'd suggest contacting our QuickBooks payroll support team to verify further and check the status on your filing. 

In addition, I'll be dropping this resource that can help you in filing your sales tax return and recording your sales tax payment which come in handy for you moving forward: File your sales tax return and record sales tax payments in QBO.

Your success is my priority, and I want you to feel confident navigating these complexities. I'm just a message away and ready to assist you in any way I can. Together, we can ensure that your payroll processes are smooth and compliant.