IRS payment hit wrong cash account

I'll help you change the bank account for payroll in QuickBooks Online, chanoah.

There are a couple of steps to do to update it and make sure that the tax payment is taken out from the correct account. Please note that if the transaction is still pending, it will be taken out from the existing account. 

First, let's put in the correct bank account in the Payroll Settings. Here's how:

1. Go to the Gear or Settings ⚙ icon, then select Payroll Settings.
2. Click Edit ✎ beside Bank Accounts, then select Update.
3. Select Add new bank account.
4. Search your bank name. You may be asked to enter your online banking user ID and password. Otherwise, select Enter bank info manually. Enter your routing and account number, then select Save.
5. Click Accept and Submit.

Second, verify your new account with a test transaction after 2-3 business days. The amount should be a debit and credit of less than $1.00 from Intuit Payroll Service. You may call your bank or check your bank statement online to verify the amount. 

Follow these steps on how to put in the test amounts: 

1. Go to Payroll and select Overview.
2. In the TO DO list, find the Check your bank account item, then select Edit .
3. Click Verify Amount.
4. Enter the amount of the test transaction (no decimals) in both fields.
5. Select Verify.

Lastly, change your bank account in your accounting preferences. This will ensure your payroll transactions and tax payments post to the correct account in your books. Here's how:

1. Go back to the Gear or Settings ⚙ icon, then select Payroll Settings.
2. Proceed to the Accounting section at the bottom of the page, then select Edit ✎.
3. In the Paycheck and payroll tax payments select Edit ✎. From the Bank account ▼ dropdown, select the account you set up in "Step 2: Set up your bank account in your chart of accounts."
4. Select Continue, then click Done.
5. Click Done.

Check out this article for more details and references when running payroll in QBO: 

• Change Your accounting Preferences in QuickBooks Online Payroll 
• Run Payroll Reports in QuickBooks Online Payroll 

Reply down below or ask more questions in the forum in case you need more help with QBO. 

Hi chanoah.

Hope you’re doing great. I wanted to see how everything is going about changing the bank for tax payment. 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've had the same issue for both State and Federal taxes with QBO.  I followed the steps you outlined above to add my Bank Account successfully and selected it in Accounting Preferences.  I will process monthly payroll next week on the 1st and see if it records correctly  My question is how do I fix what has already occurred?  At the bottom of the Accounting Preferences screen there is an option to "Update existing transactions" but it says in doesn't apply to Bank Account setting.

So how do I fix this?  I have payroll / payroll transactions from last year that recorded in Cash and I can't properly reconcile my Bank Statements or close out my year until fixed.  What do I need to do?  Thank you.

I've had the same issue for both State and Federal taxes with QBO.  I followed the steps you outlined above to add my Bank Account successfully and selected it in Accounting Preferences.  I will process monthly payroll next week on the 1st and see if it records correctly  My question is how do I fix what has already occurred?  At the bottom of the Accounting Preferences screen there is an option to "Update existing transactions" but it says in doesn't apply to Bank Account setting.

So how do I fix this?  I have payroll / payroll transactions from last year that recorded in Cash and I can't properly reconcile my Bank Statements or close out my year until fixed.  What do I need to do?  Thank you.

Hello, HealthITConsultant. 

I can help you in handling the payroll posted to the wrong account.

As of the moment, the option to move paychecks to another bank isn't possible right now.  

In the meantime, you can manually record payroll as journal entries so that you can transfer it to the appropriate account and perform a data reconciliation.

To create a Journal entry, follow these steps: 

1. In the left menu, click the + New icon. 
2. Pick a Journal entry. 
3. Enter the paycheck date, under the Journal date.
4. Fill out the necessary information. 
5. Tap Save and close.  

Also, I suggest reaching out to your accountant to help you out by balancing the credits and debits in Journal Entry to verify the accuracy of your books. 

I've also added these articles when the account is ready to be reconciled: 

• Reconcile
• Tips for year-end reconciliation
   

Please feel free to fill me in if you have any other questions about Payroll Settings. Have a nice day!