QBO Posts Automatic Tax Payments and Payroll to wrong account.

RiseInc · ‎April 01, 2021

Our company recently started using QBO. We have had payroll since March 1st, 2021. Upon setting up QBO, we linked three bank accounts, through the same bank. For this post they will be called PAYMENT(0001), CHECKING(0002), and SAVINGS(0003). Direct Deposit is setup on CHECKING(0002), and the payroll bank account in settings is also set to CHECKING(0002).
Earlier this month, upon running the first payroll, we noticed an issue where it automatically sets payroll to be run through PAYMENT(0001), but this could be fixed via selecting the drop down menu and selecting CHECKING(0002). All three bank accounts appear is this drop down menu.
We were assured that future payroll would go to the account in our payroll settings, but we have had to continue to select the account from said dropdown.
We have now run into a serious issue. Our automatic tax payments to both the IRS and State have appeared in a new account under our chart of accounts called "Checking (0001)", IE a chart with the same last 4 as PAYMENT(0001).
We can not confirm whether or not it will be withdrawn from this non existent account [Checking (0001)], the improper account [PAYMENT(0001)], or the proper account via settings [CHECKING(0002)].
I called support and I was only told:
1) The settings show that it should post to the right account, CHECKING(0002).
2) All we can do is create a journal entry to correct the chart of accounts.
3) If it does try to withdraw from the nonexistent account or the wrong account, we will likely be flagged for fraud and have a hold put on our account. After which we can contact Quickbooks to have that issue resolved.

At this rate, it looks like we need to find a different option for both our accounting and payroll, because this creates a liability for our company as far as proper payment of our withheld taxes to the IRS and State.
We are very disappointed.

MadelynC · ‎April 01, 2021

This isn’t the experience we want to leave with, @RiseInc.

I know how important for transactions to be posted in the right account for accuracy. You need to make sure CHECKING(0002) is set up accordingly in the Payroll settings. This way, QuickBooks Online will allocate and automatically set the account every time you run payroll.

You can review the Accounting Preferences section by following these steps below:

Go to the Gear icon and select Payroll Settings.
Under Preferences, click Accounting.
Choose Accounting Preferences.
Make sure the correct account is selected.

If everything in your QuickBooks account is set properly, especially for the tax account. I recommend contacting our Technical support once more to help investigate the issue further. They can determine what causes the program to post entries in the incorrect account.

You might want to check this reference to get answers to your payroll tax payment. From there, you can learn some tips in managing your payroll.

Don't hesitate to drop a reply below if you additional account concerns. I'll be around to help in any way I can. Always take care!

RiseInc · ‎April 02, 2021

As I said in the original post, our payroll settings are set to the correct accounts, and we already contacted support, who were unable to tell us why the error was occurring, and only said that we can correct it with a journal entry, although there is a chance our account would be put on hold for fraud if the money was withdrawn by QuickBooks from the account QuickBooks linked to our payment despite a different account being set as our payroll account.
Yet again, we are disappointed, and receiving a reply telling us to do what we explicitly stated we have already done is extremely aggravating and in no way shows concern for us or the liability created by an error solely on the part of QuickBooks.

RiseInc · ‎April 02, 2021

Addendum: The solution you presented isn't even an option.
Under the Gear icon, and then Payroll Settings, there is no option for Preferences.
The Listed option are:
General Tax
Federal Tax

Colorado Tax

Auto Payroll

Taxes and Forms

Email Notifications

Shared Data

Direct Deposit

Print

Accounting

We have the correct account listed under Accounting and Bank accounts

Angelyn_T · ‎April 02, 2021

Hi, @RiseInc.

I appreciate you for getting back to us here on the Community page. Base on your list of options provided, you have the new payroll settings interface specifically for full-service payroll. From the Accounting tab, make sure to select the correct accounts from the Accounting preferences - Review window. This way, you can ensure that your payroll transactions and taxes are posted to the desired accounts.

I'm adding these screenshots for your visual references.

If everything is correct, yet the error continues, I would recommend reaching out to our QuickBooks Online Support Team. This way, a representative can review the incorrect posting of your payroll entries. To contact support:

Sign in to your QuickBooks Online company.
Select Help (?).
Select either tab to get started:
- Assistant: Get quick, personalized answers. Select a suggested option, or type a question or topic you need help with. If you decide you need further help, you can still Talk to a human.
- Search: Search the QuickBooks Online knowledge base directly, or select Contact Us and choose a way to connect with us:
  - Start a chat with a support expert.
  - Get a callback from the next available expert.

On the other hand, you can open this link to learn more about setting up payroll in QuickBooks Online: Get started with Payroll.

Moreover, you can open the topics from our help articles for more tips about QuickBooks or payroll: Find QuickBooks help articles, video tutorials, and more for QBO Payroll.

If you have any other questions about the posting of your payroll wages and taxes, please notify me by adding a comment below. I'm always here to help. Keep safe!

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QBO Posts Automatic Tax Payments and Payroll to wrong account.