Missing payroll tax liability in QBO Online

Okay, update on this.

I looked closer, and the liability for August 2023 *was* created but it's already by reconciled by the payment made today. Yet I still have an unreconciled transaction to for the tax payment to deal with, and obviously when I reconcile it to the appropriate liability, I create a negative likability.

So I'm totally lost re: what to do now (but at least it feels like a simpler problem to solve).

Yes, QuickBooks Online Payroll automatically creates and calculates payroll tax liabilities when you run payroll, jpcdis. 

As long as you input the correct information, then the correct amounts are set aside for taxes. This feature also helps you save time and ensures accuracy in managing your payroll taxes. Visit this link to learn more about how it's handled: Understand how your payroll taxes are calculated.

Furthermore, when you encounter an unreconciled transaction in QBO Payroll, it's important to know that all your liabilities are properly accounted for. To fix the negative amount created when reconciling a payment, you can follow the steps below:

1. Open your QBO company, and navigate to the Taxes menu.
2. Select the Payroll Taxes tab, then Payment History.
3. Locate the tax payment transaction that resulted in the negative liability.
4. Hit Edit Payment.
5. Click on Save and close.

After that, QuickBooks should now update the liability balance accordingly.

Please keep in mind that it's always a good idea to double-check your entries and consult with your accountant. They'll guide you in keeping your books in order. 

For future reference, read these extra modules about tax filings and liability payments:

• Pay and file your local taxes in QuickBooks Online Payroll
• Create a payroll liability check

Feel free to drop a comment below if you have follow-up questions about liabilities. I'll be here to help. Keep safe.

Hi Mich_S, thanks for the help. I think I figured it out.

When QBO pays the IRS, it associates the transaction with account = Cash and reconciles the transaction to Payroll Liabilities: Federal Taxes (941/943/944). This reduces the liability by the correct amount, but also reduced Cash by the same amount.

When the actual banking transaction (the outflow to the IRS) shows up and is ready to be reconciled, it needs to be reconciled in a way that reduces the negative Cash value without treating the outflow as an expense. I did this by reconciling the banking transaction as a transfer to Cash. If, on the other hand, I reconcile it to Payroll Liabilities: Federal Taxes (941/943/944), then I (in effect) duplicate the transaction, creating a negative liability.

Does that make sense?

Also, FWIW: I couldn't follow your instructions from above. In Taxes > Payroll tax, there are no transactions listed in Done (even though I've had two payroll transactions, confirmed). When I click on Taxes > Payroll tax > Payment history, I do see my two transactions. But these are not editable (nor do I see why they would be). So I'm not sure how I would implement your solution.

Thanks for your help!

I'm glad to hear that you've been able to make some progress, but I'm here to assist you further with any remaining questions or concerns, @jpcdis.

It's important to understand that payroll liabilities are indeed closely tied to the paycheck date, and discrepancies may arise if the information related to paycheck dates is inaccurately entered.

There is no need for you to follow and implement the steps provided by the previous agent. In light of this, I'd recommend reaching out directly to QuickBooks Online support. They can provide you with specific guidance and assistance tailored to your account and the technical challenges you're experiencing. They have the expertise and tools to help you resolve these issues efficiently.

Here's how: 

1. Sign in to your QuickBooks Online company.
2. Proceed to Help (?).
3. Click Contact Us.
4. Enter your concern, then select Let's Talk.
5. Choose Start a chat or Get a callback from the next available expert.

Moreover, if you need to pay and file your 941, 944, 943, 940, state, and local taxes using QuickBooks, feel free to review this link: Pay and file payroll taxes and forms in QuickBooks Online Payroll.

Should you have any more questions or encounter any new developments, please do not hesitate to let me know. I'm here to assist you every step of the way, and your satisfaction remains our priority.

Hi Rubielyn , thanks for the update!

Two things:

1. I just keep feeling that no one is actually reading (or understanding) the information I'm providing. For example, there are no discrepancies involved here. The payroll tax amount is processed correctly. This is about reconciliation.

2. I came here and posted my question after one of the most frustrating agent conversations I've had in recent memory. It took 24 minutes, of mostly answering the agents repeated questions, just to get to the point where they made it clear they didn't know how to help me.

So I appreciate it, but I'm not going to contact support about this issue. I've figured it out, and I'm going to try to wait a little longer before I *do* have to contact support about another issue/case with payroll that was supposedly going to "fix itself" but hasn't. But I've had enough of this week struggling with Quickbooks.

Thank you!

I totally understand your frustration with these payroll "experts" at Quickbooks.  I just spent 2 hours 10 minutes with an associate who couldn't seem to clear out bad tax payment data that came over from QBDesktop to QBOnline. She brought in more "experts" and then our call was abruptly disconnected after she failed to resolve the issue. I have not received a callback from her despite my attempts to get one. In addition, I have been trying for THREE MONTHS to get them to allow me to change my payroll bank account!!! I have dealt with five "experts" on that issue and the issue has been "escalated" three times with no resolution.  

P.S. She finally said that I had to talk to my accountant about the incorrect date in QB. What is that all about?  I AM the accountant!!! That's when the call was disconnected.