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Recording prior tax payments

SOLVEDby QuickBooksIntuit Online Payroll131Updated 3 weeks ago

Learn how to enter tax payments made for prior tax periods.

Do you need to reconcile your tax history? If you are new to our payroll products, you'll want to enter your prior payroll history, as well as any tax payments you paid outside the payroll system.

When dealing with penalties and interest paid to the tax agencies, you should not record these together with the tax due. It will result in overpayment. You should record these payments as an expense in your QuickBooks Online.

We'll show you how to record prior tax payments in Intuit and QuickBooks Online Payroll.

Note: Not sure which payroll service you have? Here's how to find which payroll service you have.
QuickBooks Online Payroll Core, QuickBooks Online Payroll Premium, QuickBooks Online Payroll Elite - Tax payments depends on if you chose to have us pay and file your federal and state payroll taxes for you or if you opted to pay and file them yourself. If you aren’t sure, check your automatic tax payments and form filing status first.

To record your tax payment

  1. Select Taxes, then Payroll Tax.
  2. Select the Payments tab.
  3. Review the payments listed and locate the tax you want to record a payment for.
  4. If the payment is listed, choose the option Mark as paid then select Yes, mark paid. Note: This will be a non-posting transaction. It will not affect the bank register, but it will clear the taxes from showing due and record the deposits.

If the payment is not listed, continue with the steps below

  1. Select Prior tax history.
  2. Choose Add Payment.
    Note: This will be a non-posting transaction. It will not affect the bank register, but it will clear the taxes from showing due and record the deposits.
  3. Select tax type and liability period (the period that the taxes were accrued) then enter:
    • Payment Date
    • Check Number (optional)
    • Notes (optional)
    • Tax Item Amounts
  4. Select OK. You will then be back to the Prior Tax Payments screen.

If you need to edit a prior payment

  1. Select Taxes, then Payroll Tax, then select Tax payment history.
  2. Choose a date range then select Run Report.
  3. Choose the payment you want to change then select Edit.
  4. Make the necessary changes, then choose OK.

Enter prior tax payments

  1. Select Taxes & Forms then choose Enter Prior Tax History.
  2. In the Prior Tax Payments screen, select Add Payment.
  3. In the Add Payment screen, complete the following tax payment details.
    • Tax Type
    • Liability Period (select the period in which the liability accrued)
    • Payment Date
    • Check Number (optional)
    • Notes (optional)
    • Tax Items Amounts
  4. Select OK to return to the Prior Tax Payments report screen.
  5. To add a tax payment you made before using Intuit Online Payroll, choose Add Payment. (To edit a record you have already created, select the Details link and update the information as needed.)

Note: after adding tax payments you will have to export the transaction into your QuickBooks, it will reduce the liability showing due in your account.

Record payments paid directly to an agency or financial institution

If you've paid a tax and it still appears due, you might have paid the tax outside of your Payroll product. Some sample scenarios are:

  • You mailed a check to the tax agency.
  • You recorded the deposit in the banking area, under Write Checks. This will show the payment as a check in the bank register rather than as a tax payment.
  • You made the payment directly through your financial institution using online banking. This will automatically download the cleared check to the bank register.
  1. Select Taxes & Forms, then choose Pay Taxes.
  2. In the Pay taxes screen, select Create Payment for the tax you want to pay.
  3. Uncheck the Pay Electronically box.
  4. For the Payment Date, select Other then enter the actual date the payment was made.
  5. Enter the check number.
  6. Select Approve.
  7. You'll be directed to the Print Payment Coupon screen. (Note: Since you've already made your payment, you can ignore it.)
  8. Verify your tax payment:
    1. Select Reports, then choose Employer Reports.
    2. From the dropdown, choose Tax Payments then select Go.


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