Thank you for your continued trust in QuickBooks (QB), YFNCL. We truly value your loyalty, especially when facing unexpected challenges. I'm committed to ensuring this program continues to be valuable tool for your business operations. I'll help you navigate these recent changes and provide a clear explanation of how QuickBooks calculates these numbers. With a better understanding of the process, you can regain control of your finances.
The new update is implemented to make payroll taxes simpler for QBO Payroll customers. Instead of withdrawing and paying taxes when they're due, taxes is withdrawn every time payroll is processed or when taxes needs to be updated. You can view the amounts or previous withdrawals in the Payroll Tax Center. Funds will be put in a holding account until they are due to the tax agencies.
This is happening to provide more consistency around withdrawing tax funds on particular dates. Customers can set aside money on an ongoing basis versus having one lump-sum taken out at tax time. This'll help decrease the possibility of non-sufficient funds (NSF) and tax notices.
When Auto Pay & File is enabled, opting out of automated tax withdrawals isn't an option. However, you still possess control over this feature. If you prefer to handle the timing of your payroll tax payments and filings manually, you have the ability to turn off this functionality. This will allow you to oversee and execute these tasks according to your own schedule and cash flow needs. Here's how:
- Go to Settings and choose Payroll Settings.
- Tap the pencil icon beside Taxes and forms section.
- Uncheck the Automate taxes and forms box.
- Choose how you plan to handle taxes.
- Hit Save, then Done.
The numbers withdrawn are determined by the total taxes on the employee's gross pay, tax rates, and applicable deductions.
For more information about how payroll taxes are calculated, check out this article: Understand how your payroll taxes are calculated.
If you have other questions about managing payroll taxes, feel free to reach out by leaving a comment below. Staying informed about this process not only helps you steer clear of penalties but also empowers you to you to concentrate on confidently growing your business. With the right guidance and resources, you can tackle any obstacles and keep your company on the right path.
