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LarryHat17
Level 1

Why is payroll showing this error message? "You have either selected a tax liability account on a transaction where it's not allowed, or haven't specified a tax rate..."?

 
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Best answer August 15, 2020

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LarryHat17
Level 1

Why is payroll showing this error message? "You have either selected a tax liability account on a transaction where it's not allowed, or haven't specified a tax rate..."?

I solved my issue. 

QBO payroll automatically setup my Oregon state withholdings account, but created it as a "Sales Tax Payable" account instead of a "Payroll Tax Payable" account.  I fixed it by creating a  new "Payroll Tax Payable" account and updating the Tax liabilities accounts under Payroll Settings.

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1 Comment 1
LarryHat17
Level 1

Why is payroll showing this error message? "You have either selected a tax liability account on a transaction where it's not allowed, or haven't specified a tax rate..."?

I solved my issue. 

QBO payroll automatically setup my Oregon state withholdings account, but created it as a "Sales Tax Payable" account instead of a "Payroll Tax Payable" account.  I fixed it by creating a  new "Payroll Tax Payable" account and updating the Tax liabilities accounts under Payroll Settings.

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