How to record federal and State income taxes paid.

Hi there, @dean19.

I'll share with you the steps on how to record your tax payments in QuickBooks Online (QBO) Payroll.

If you're using QBO Enhanced Payroll, you can follow these steps:

1. Go to the Taxes menu, then choose Payroll Tax.
2. Select Enter Prior Tax History.
3. Choose Add Payment.
4. Select tax type and liability period (the period that the taxes were accrued) then enter:
   • Payment Date
   • Check Number (optional)
   • Notes (optional)
   • Tax Item Amounts
5. Click OK. screen.

Once the payment is recorded it will reduce the liability showing due in your account.

For QBO Payroll Core, Premium, and Elite subscriptions, you can follow the steps in this link instead: How to enter tax payments made for prior tax periods.

In case you see an overpayment (negative number) on your liability report or Taxes Due page, check out this article to fix it: How to handle overpaid taxes in QuickBooks Online Payroll.

Let me know if you need further assistance with this. I'm always around to provide answers and clarifications to your questions. Have a great day ahead and take care.

Hi dean19,

Hope you’re doing great. I wanted to see how everything is going about recording federal taxes you had the other day. Was it resolved? Do you need any additional help or clarification? If you do, just let me know. I’d be happy to help you at anytime.

Looking forward to your reply. Have a pleasant day ahead!

I have similar question. We are not using QB payroll we use the manual QB payroll. For the quarterly and annual tax payments. Am I just entering them in as an expense? Its for an LLC business.

Thank you

MP

Thanks for following this thread, @MP11. 

 as an expense. 

You also want to enter this transaction using Journal Entry since this is for recording purposes only in QuickBooks.

Here's how:

1. Go to the + New button.
2. Select Journal Entry, then fill out the fields to create your journal entry.
3. Click Save and new or Save and close.

You can check out this link for further details and instructios: Create a journal entry in QuickBooks Online

I'd recommend consulting an accountant to make sure your books are accurate.

Yes, you can enter this transaction

I'll be here if you need more help. Take care! 

Thanks for the response!  

The accountant doesn't use QB he uses the YE reports for taxes. I will advise him on the accounts to confirm that's the correct ones.

I do have one additional question. For the YE tax payments would I still use the JE function or would I use QB prior year payment function to end the payments?

Thank you,

MP

Thanks for getting back to us, MP.

If you want to record tax payments made for prior tax periods, you can use enter prior tax history option. Then, mark it as paid manually.

If you want to adjust the amount, you can create a Journal entry instead.

Though, I'd still recommend reaching out to your accountant so you'll be guided further.

Keep in touch with me whenever anything arises. Keep safe!