Since the first pay period in October payroll taxes are not auto matching. They are withdrawing on the date payroll is paid, but not posting to the following Wednesday?

Hello cbg492-comcast-n,

Welcome to the QuickBooks Community!  So we can assist you better, is this a case where it is affecting one person's payroll or everyone's?  Knowing this information will be helpful as we try to resolve this matter.

I am looking forward to your reply. See you soon! 

@SashaMC  You know very well that they are referring to QBO's ridiculous new policy on withdrawing payroll taxes every time payroll is ran.

Of course it's for everybody's payroll.

Yes - It is affecting all payroll.  The issue is the date that QuickBooks is actually taking the money out of the bank is not matching the date that is in QuickBooks for the payment so the tax payments are not matching.  They are showing as an expense that I have to add.  They are not auto showing in the registry anymore either.  This is an issue as it will affect my reconciliation for end of month reports. Quickbooks is taking the payroll tax payment out the same day as payroll from the bank and that is what is in my for review tab.  But the actual date Quickbooks has listed in the tax history for the payments is the following Wednesday.  So, it seems with the update Quickbooks has not adjusted the dates on the backend of when they are pulling the taxes.

Yes, it is affecting all payroll.  Please see attached document for explaination and visual of the issue.

Hi there.

We appreciate your prompt reply, as well as the details you included in your post. I'll share some updates regarding tax payments being recorded as expenses in QuickBooks Online Payroll.

Please be informed that we are currently investigating the issue you reported (INV-112933). This issue arises when the tax payments in the review bank feed do not match the payments submitted.

Please be assured that our dedicated Product Engineers are actively working to resolve this matter as quickly as possible. We appreciate your patience and understanding during this process. Rest assured, we are committed to providing you with a reliable and efficient QuickBooks Online experience.

In the meantime, the best course of action is to contact our Customer Care Support Team to report your experience with this issue and be added to the list of affected users. This will ensure that you receive prioritized email updates about the ongoing investigation.

Here's how:

1. Sign in to your QuickBooks Online account.
2. Click the Help (?) icon.
3. 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.

Additionally, you can pay and file your payroll taxes and forms electronically, providing you the flexibility to manage these payments within QuickBooks Online Payroll.

Please leave a comment below if you have any other concerns related to payroll taxes in QuickBooks Online Payroll. The Community is here to assist you.

I am having the same issue but the quickbooks support team has made it 10 times worse.  I have now called 3 times and been on the phone for hours each time. I called the first time because my bank transactions from 10/3 could not be matched to any payments even though the money came out of my bank account. The QB person said it was a known issue and deleted transactions because they were listed under quickbooks payroll and did not go under the respective tax agencies. I called again and the guy I spoke to recreated the transactions as expenses and said that would fix my issues.  Well I noticed yesterday that quickbooks is now saying I made an extra payment to the IRS and that I need to contact them for a refund and press RESOLVE the issue on QB. I Called again and todays woman was worse than the other two... just kept telling me I had to contact my accountant and the IRS to see if I actually overpaid. She could not help me at all. The only thing I got out of her is YES, WHILE THE MONEY IS SHOWING IT CAME OUT OF MY BANK ACCOUNT, THE TAXES ARE NOT ACTUALLY BEING PAID YET? MAYBE? WHO KNOWS? I am on hold with the IRS now to figure out what has actually been paid for my 941 and 940 taxes since both have been taken out of my bank account! The 940 taxes are generally not paid until January so why did they take it out of my account now??? I have now deleted the  expense transactions that were created to try to figure out if that will help. The overpayment went away but now I am trying to figure out if anything was actually paid to the IRS yet or not. Absolute nightmare!

@ssmhc  Unless the IRS has assigned you to a payment schedule that is more frequent than monthly, then no, the IRS has not received the money that is being taken out of your bank account each payroll.

QuickBooks is taking money for taxes every time you run payroll.

QuickBooks is not necessarily paying it every week; the payment will still be submitted according to your normal tax deposit schedule, be that weekly, biweekly, monthly, quarterly, or yearly.

Yes, they are doing this primarily to earn interest on their customer's money while it's in limbo.

No, they will not change their mind.

It looks like this has been fixed for November.  My tax payment on Nov 1st matched.  How do we go back and fix all the ones that did not match in October?

Your constant participation in this thread is much appreciated, cbg492. I’ll be here to help you accurately fix your payroll taxes for October.

Since you mentioned that the tax payments are coming through as an expense, you'll need to Exclude the tax payments synced as expenses. This way, you can manually record the tax payments within the software, ensuring you can clear the corresponding entries in your bank register so you can proceed with the reconciliation process for the month of October.

I'll walk you through the process:

1. Navigate to the Bank transactions page.
2. Tick the checkboxes and choose Exclude. 
   
   

Then, you can record the tax payment using the software. Let me show you how:

1. Go to Taxes, then Payroll Tax.
2. Select the Payments tab.
3. Review the payments listed and locate the tax for which you want to record a payment.
4. If the payment is listed from the dropdown menu choose the option Mark as paid, then click Yes, mark paid. 
5. If the tax payment isn't listed, follow this article for additional details: Record prior tax payments. 

Afterward, you'll need to manually reconcile the payment within the bank register. You can perform this action by navigating to the associated account and selecting the View register option. Choose the transaction and under the Check column, tick the field until the R selection appears. Once done, click Save. 


Moreover, I've included a helpful guide that explains how to search for and identify transactions in your account records. This resource will assist you in reviewing or adjusting specific entries as necessary: Find, review, and edit transactions in account registers in QuickBooks Online. 

Lastly, check out these articles to learn how to organize your accounts effectively, ensuring alignment with your bank and credit card statements to maintain accuracy in your financial records: 

• Reconcile an account in QuickBooks Online
• Fix issues at the end of a reconciliation in QuickBooks Online

I'll keep this thread open, so if you have more questions, share them in the comments section below. I'll be available to assist you throughout this process, ensuring you have all the help you need. 

Thank you for the reply.  However, when I click on the bank transaction and select match the only options that come up during the timeframe needed are checks that I have manually put in waiting to clear the bank.

Any other suggestions to get these October tax payments to match so I can reconcile and get all my reports completed? 

Thanks for following up with the Community, cbg492-comcast-n.

Some transactions can't find their match from existing records if:
 

• The amounts of dates don't match.
• Your transaction's older than 6 months.
• The payment has already been reconciled.
• The record's already matched with another transaction.
• Your bank account on the payment isn't identical to your account where the match is located.
• The system will look for transaction(s) that fall within a 10% range of your transaction dollar amount when trying to match foreign currencies.
• There's multiple currencies involved, and the exchange rate has shifted significantly, making your amounts very different.

If you need help identifying what the cause is for the particular transaction not showing as an option to match with, I'd recommend working with an accounting professional. In the event you're in need of one, there's an awesome tool on our website called Find a ProAdvisor. All ProAdvisors listed there are QuickBooks-certified and able to provide helpful insights for driving your business's success.

Once you've found the appropriate transaction to match with, you can use your steps in Erika_K's post to match them together.

I've also included a detailed resource about matching transactions which may come in handy moving forward: Match online bank transactions

Please don't hesitate to send a reply if there's any additional questions. Have a wonderful Wednesday!

Well after another 5 hours on the phone with QB  and their system admin somehow deleting two more of my tax withdrawals due to a system problem, I was told to create journal entries for the missing transactions and wait until 11/15 when the taxes are paid to  the IRS  and they "hope" the problem will fix itself. In the meantime, I cannot reconcile my bank account because they suggested I wait to see if everything works...at which point I will have to call back to explain the situation for the 10th time and "hope" they can help.  Also is anyone else not ok with them taking and holding onto our money for 6 weeks or longer prior to taxes being paid?  Sounds like a lawsuit waiting to happen.  And ya, I have to use the auto tax feature because I was paying them manually but they couldn't figure out why I couldn't pay one of my taxes so suggested I use the auto feature!

Well after another 5 hours on the phone with QB  and their system admin somehow deleting two more of my tax withdrawals due to a system problem, I was told to create journal entries for the missing transactions and wait until 11/15 when the taxes are paid to  the IRS  and they "hope" the problem will fix itself. In the meantime, I cannot reconcile my bank account because they suggested I wait to see if everything works...at which point I will have to call back to explain the situation for the 10th time and "hope" they can help.  Also is anyone else not ok with them taking and holding onto our money for 6 weeks or longer prior to taxes being paid?  Sounds like a lawsuit waiting to happen.  And ya, I have to use the auto tax feature because I was paying them manually but they couldn't figure out why I couldn't pay one of my taxes so suggested I use the auto feature!

None of the fixes that I have been told to do work.  I am not sure they are understanding the problem.  I have searched for transactions to match which do not come up.  I have downloaded the transactions from the bank feed and changed the dates to match the actual tax payment and that didn't work.  Finally, yesterday I just manually added them as an expense.  I put the payroll dates and downloaded the tax payment information and attached it to each transaction.  I'll make note of it and let our accountants know.  We pay payroll taxes weekly, so I had four entries that did not match for October payroll. Mine seem to be fixed for November as the taxes that came out this week auto matched.  I had to do something so I could reconcile October.

Some Payroll taxes have not been forwarded to the taxing authorities for QTR 3 2024.  Clients receiving notices with penalties and QB has the money.  They say its a "known issue" and they are working to resolve it and there will not be penalties.

If its a known issue?  Where is the communication to that fact??????????  

Things have been looking really shady with QB lately.  

Thanks for joining the Community and getting involved with this thread, rosco64.

The investigation mention in Eman_E's post is specific to tax payments not auto matching. That investigation's case number is INV-112933. If you're having the same problem, I'd recommend getting in touch with our Customer Care team and referencing the investigation's case number. The agent you're working with will be able to add your account to our investigation if necessary. This ensures you'll receive email notifications about any updates relating to it.

If Intuit hasn't forwarded your payroll taxes to the appropriate tax authorities yet, I'd recommend confirming each of your tax setup tasks have been completed:
 

• Task 1 - Connect the bank account you use for tax payments and direct deposit.
• Task 2 - Set up federal, state, or local taxes
• Task 3 - Authorize Intuit as your state third party administrator (if applicable). Some states require you to authorize Intuit as an official third party administrator to pay and file on your behalf. This can be accomplished on the state's website if necessary.
• Task 4 - Electronically sign your authorization forms.

After completing each step, you'll be able to generate payments and filings in QuickBooks to be sent to the appropriate agencies. Confirm the payments/filings have been generated so that Intuit will know to forward them to the proper recipients.

Another thing you can check if everything's already set up properly is if your I’ll pay and file the right agencies through their website or by mail setting's turned on. This would prevent Intuit from paying/filing for you, since your account would be setup for handling the taxes and filings yourself.

Here's how to check and make changes:
 

1. Use your Gear icon, then go to Payroll Settings.
2. From the Taxes and forms section, click your Pencil (Edit) icon.
3. Review your I’ll pay and file the right agencies through their website or by mail option. If it's turned on, turn it off.
4. If any changes were made, select Save, then Done.

Once Auto-Pay/File is enabled, on the first of the following month, Intuit will start automatically processing any tax payments moving forward. If you have any tax liabilities from a period prior to when Auto-Pay/File is enabled, you'll still be responsible for manually processing those before the Tax Filing System takes over your future payments.

In the event you've tried all of your recommended troubleshooting processes, but taxes still haven't been forwarded to their appropriate agencies, you'll want to get in touch with our Customer Care team. They'll be able to pull up your account in a secure environment, conduct further research with you, and create an investigation ticket if necessary.

I've also included a detailed resource about working with payroll which may come in handy moving forward: Pay & file payroll taxes/forms

Please don't hesitate to send a reply if there's any additional questions. Have a lovely Thursday!