Payroll taxes coming out of wrong bank account

Hello amcabee!

I understand that you need to post the tax payment to the correct account. I'm here to help you.

Currently, this issue has been escalated already and our engineers are now working on a fix. I suggest you reach out to our Support Team so your company file will be included in the investigation and you'll receive email updates.

1. Click the (?) Help icon and enter Talk to a human (then type it again when prompted).
2. When asked by the bot, enter "Record Tax Payments".
3. Select I still need a human, then proceed with Contact us or Get help from a human.
4. Choose either Chat or Callback.

I've added some links you can check. These will show more info on how to manage your tax payments in QuickBooks Online:

• Recording prior tax payments

• Get answers to your payroll tax payment and filing questions

Leave a comment below if you have other concerns. I'll be here!

Allows you to select the account but still post into the wrong bank account.  The engineers were made aware of 6/3 but 6/15 still not correct.  This is a PAIN

Still waiting on a fix.  Not corrected as of 6/22

We want this fixed as much as you do, Amcabee.

The issue is in the process of being prioritized. This is being actively looked at. However, we're unable to provide the date to when this will be resolved. Rest assured, though, that our engineers are doing their best to find a fix. 

If you haven't reached out to our payroll support yet, please do. This way, you'll be added to the list of affected users. 

Don't hesitate to visit the Community if you have other concerns. We'll be right here to assist you. Take care!

It's hard to believe this is a priority. It's been more than 5 months and I'm still having this problem. How can this still be an issue?

Hello Cerapus!

I understand that you want to post the tax payments to a different account. I'm here to help and share some details about it.

What I can recommend is to change the default bank account in payroll settings to the account that the payment came out of. Follow these steps:

1. Go to the Gear icon and select the Payroll settings.
2. Select Accounting, then change the bank account to the account the tax payment is suppose to post.
3. Record the tax payment.

In addition, it's best to contact our Support Team so they can check your account and create an investigation, if needed. They are the ones who has a tool to verify what's causing this behavior.

1. Click the (?) Help icon and enter Talk to a human (then type it again when prompted).
2. When asked by the bot, enter "Payroll Tax Payments".
3. Select I still need a human, then proceed with Contact us or Get help from a human.
4. Choose either Chat or Callback.

I added this link you can check if you need to run payroll-related reports: Run payroll reports.

Comment again here if you need more help with payroll. Thanks!

Same issue here.  I have a different bak account in the default settings, and using the dropdown does not work.

Hi, @nwmech1234.

I appreciate that you want to use a different account for your tax payments. 

As of the moment, you can follow the steps provided by my colleague @AlexV above.

For further information on this, I recommend contacting our Technical Support team. They have the tools to look into your account and figure out what's causing the problem. Here's how:

1. Click the (?) Help icon and enter Talk to a human (then type it again when prompted).

2. When asked by the bot, enter "Payroll Tax Payments".

3. Select I still need a human, then proceed with Contact us or Get help from a human.

4. Choose either Chat or Callback.

I've also included these articles to learn more about your tax payments in QuickBooks Online:

• See a report of tax payments made.
• Recording prior tax payments.

Keep in touch if you still have any other concerns. I'm always here to help you out. Have a wonderful day!

This just happened to me out of the blue.  It's always posted to the right bank general ledger account.  Our bank changed names (everything else is the same) so I only change the name of the general ledger account from the old bank name to the new bank name and now the taxes are going to a general ledger account in the old bank name yet and there isn't even a GL account that has a balance in that name anymore.  Crazy and I can't reconcile because now the taxes are not in the correct bank GL account. Anyone have a fix please? 

I understand the importance of being able to change your  bank account for payroll tax, @Lisa2002.

Rest assured, the reported issue has been resolved. You might want to change the payroll tax account information by following these steps:

1.  Go to the Gear icon.
2. Click on Payroll Settings.
3.  Select Preferences at the top of the page, beside Setup.
4.  Choose Accounting Preferences.
5.  Choose Customize.
6. Choose the checking account to use for payroll.

In case you'll experience the same problem, I suggest you contact Payroll Support. They can look into this further and can investigate and  give you the best answer.

I'm also adding this article for more information about managing business information on payroll account: Update your business info in online payroll.

You're always welcome to post if you have other questions with payroll or QuickBooks. Have a good one!

Thank you although I don't have the options you are suggesting in my QB's online version.  See screen shot attached.

Hello there, Lisa2002.

I appreciate you for getting back to us about the options to update your bank account. I know how this affects your account when running payroll.

Since the option is unavailable, I suggest contacting our payroll support team to help you update your account. Here's how:
 

1. Choose the (?) Help icon and enter Talk to a human (then type it again when prompted).
2. When asked by the bot, enter "Updating Bank Account".
3. Click I still need a human, then proceed with Contact us or Get help from a human.
4. Tap either Chat or Callback.

Additionally, you can run payroll reports in QuickBooks Online. This helps you view useful information about your business and employees. 

I'm only a post away if you need more help in updating payroll accounts. It's always my pleasure to help you out again.

The reported issue has not been resolved. I've had to do this workaround for two months now. It is literally a workaround, not a resolution! I've reached out to Support and talked with someone each month to report the issue, but no one seems to be able to give an update or ETA of when it will be fixed. 

Hi there!! I have read all posts for this concern. This has also been my issue this month and also last month.

I have contacted payroll customer support and this is what i found out today.  Q/B payroll has made a change.... they will only allow 1 bank account for payroll  and payroll taxes.  Therefore you can not use 1 checking account for payroll and a different checking account to make payroll tax payments.  Now i do not know how to correct the tax payment that is posted to my main bus. checking account, but the payment is coming out of my tax account.  Does anyone know how to correct this.

thank-you

I'll help you fix this, CINDYLOU1.

You'll have the option to create a journal entry to transfer the funds to correct the tax payment. 

Before doing this process, I'd suggest working with your accountant. This way, you'll be guided on what accounts to debit and credit and prevent messing up your books.

When ready, you can proceed to these steps:

1. Go to the + New menu in your QuickBooks Online (QBO) account.
2. Click Journal entry.
3. From the first line, select an account from the Account field. Depending on if you need to debit or credit the account, enter the amount in the correct column.
4. On the next line, select the other account you're moving money to or from and enter the same amount in the opposite column.
5. Ensure you have the same amount in the Credit and the Debit column to balance the account.
6. Enter a piece of information in the Memo section to know why you made the journal entry. 
7. Then click Save.

Also, I have a link that you can read for additional guidance in moving funds between accounts: Transfer funds between accounts.

You can always get back to me if you need more help about transferring funds in QBO. I'll be here ready to back you up. 

I had this problem with QuickBooks Desktop program, not QBO. When e-paying payroll liabilities, the bank account selected on the "check" was correct, but the monies actually came out of the wrong/old bank account.

The fix for this on QBDt is to go to the "manage payment methods" icon, which is in the lower screen of "pay liabilities" tab in the Payroll Center. From here, a pop-up wizard appears. In this wizard, navigate to e-payments and make sure the bank account you want to use for e-payments shows "epay enabled". In my case, there were multiple bank accounts listed as "epay enabled" and this is what was causing the problem. To de-activate the wrong bank account, I had to delete the banking routing # & account # detail from this screen. Now, my epay liability payments get debited from the right bank account number.

Hope this helps.

I am completely blown away by this 'solution'!!!! This is not a solution AT ALL. Work with an accountant to navigate the accounting program that you pay for to work around a problem that your accounting software has created? So unacceptable. I should be able to post my tax payments and run my payroll from whichever account I select. Period. No journal entries. No contacting my accountant. This was brought to your attention over 6 months ago and it's a priority? You're kidding right? Maybe stop pouring all of your resources into high APR business loans and focus on fixing some basic functions within the accounting software that supports the businesses that you target.

This feels fraudulent. 

This fix does not work if you pay employee payroll out of one account and 941 payroll filings out of a different account.  What's the fix for that?

I agree with others - this doesn't seem like a priority when the issue is 7 months old.

I agree - unacceptable.  This is such a basic thing.  It makes no sense.

Dana

Thank-you for posting for this payroll tax/accounting problem within quickbooks online.

I just wanted to see if the problem i am having is the same that your are having??

I have been  using Q/B payroll for approx 2 years and i have always paid my payroll from 1  (Bus) checking account, and then transfer to payroll tax money to a 2nd (Tax) checking account and then pay the taxes from the tax checking  account. 

In doing this i can keep track of how much payroll taxes are owed at the  end of the month and i can a lot for this money when it is needed.  I have just had a problem last month in Dec. 2021.

When i called Q/B support they had me  change my payroll setting and payroll tax settings to reflect my Bus. checking account, and was told i could not use the both checking accounts for payroll or taxes.   I was told to contact an accountant to make the journal entries to correct where the taxes were posted incorrectly.  I have not paid taxes for January yet.  We will see if it works.....   I do agree this is not a fix.  I should be able to use any checking account that i have set up in Q/B.  i did let Q/B know that they should let their customers know when there is an update to their software.!!  as this has made a huge problem for a lot of customers.  I can not believe that i am the only company that uses a main bus. checking account and a tax checking account for their business. Looking forward to hearing any comments.:) 

You certainly are not the only person using separate accounts for payroll and payroll taxes. We have a client doing the same thing, and this glitch in QBO is causing a lot of frustration as we try to help our client. I'm very grateful most of our clients are not using QBO for their payroll! We use AccountingCS for our main payroll processing, and it works so much better than QBO Payroll. There are a few cases where QBO Payroll is almost unavoidable, so we allow a few clients to use it, but mostly we avoid it when we can because of issues like this. QBO programmers are basically unresponsive to simple issues like this, which just blows my mind....

Thank you for your comment Yoder Financial.  I wanted to just reach out the our Quick Books Online Community and see if anyone knows if there has been a fix with this. (not able to use 2 checking accounts for payroll. 1. for payroll  the other 2. for payroll taxes).  If any one knows please comment.  This is not easy using only one checking account and trying to keep track of payroll taxes that are allotted for... but still showing in our business checking account chart of accounts.  so much easier to transfer money owed for taxes to a tax checking account and pay from there. 

Hi there, CINDYLOU1.

I appreciate your time to do a follow-up about switching between accounts when making payroll transactions. I'd like to share some clarification about this.

If you are processing a direct deposit or e-pay, the funds are only withdrawn from one account. It's the one you designated and verified when you set up your electronic payments feature. Although you can change it in QuickBooks when you create a paycheck or record a tax payment, the money will still be taken out from the direct deposit account. Therefore, we do not recommend changing it when you make payroll transactions.

If you only print paychecks or record a tax payment, you're free to change the account, and the transaction will be posted to the one you choose. 

You can also check about changing a direct deposit bank account for your additional reference.

The issue about transactions posting to the main account even if a different one is selected was already resolved. Please try doing some steps like using a private browser, clearing your cache, or signing in using another browser.

Please don't hesitate to reach back out if you have other questions about the payroll processes. I'll be happy to assist you again.

This is not true.  I only record a payroll tax payment.  Even though I select the account that we pay payroll taxes out of, it reverts back to record the payment out the the checking account that paychecks are recorded in.  This happens every time, and started a few months ago.  You have lots of people here telling you that this is our collective experience.  Please - tell the people who need to fix the problem that this is happening.  Please don't tell us (people who know how to use your product) that we're doing it wrong.