Quickbooks automatically categorizes each employees tax contribution, but where do I categorize the EFTPS payments that quickbooks makes for me?

Handling Electronic Federal Tax Payment System (EFTPS) payments in QuickBooks Online is challenging. Allow me to help you with this, @kpad3300.

To begin with, may I ask how you handled the tax payment in your Banking Section? Did you use the Add, Match, or Categorize feature? This way, we can give you the solution you need.

May I also ask what Profit and Loss (P&L) you've pulled up? Is it the regular P&L or the P&L Detail report? A screenshot of the report where you've found the double tax payment will be highly appreciated. Before providing a screenshot, please ensure to censor any private information.

In the meantime, let's talk about the possible reasons why was the tax payment reported twice in your P&L report:

1. You might have used the Add instead of the Match feature in the Banking section when handling the downloaded tax amount (associated with the automatically recorded tax payment in QBO). Doing this will result in double entries in your bank register, hence, the double reporting in your P&L report.
2. There's a good chance you've manually recorded the tax payment, too. There's also an automatically recorded tax payment after you've paid it electronically (also known as e-payment or EFTPS) in QBO.

To resolve the first reason, you'll have to go back to your Banking section, undo the incorrectly added tax payment, and then match it accurately with the recorded tax payment in QBO. If you can't see it in the list of suggested matches, please turn off the Suggested Matches feature to see all transactions, including the tax payment, that you need to match.

On the other hand, if you've done the same thing for the second reason, please go back to your Payroll Tax Center and then delete the manually recorded tax payment. Once done, match the downloaded tax payment.

However, if your experience differs from what we discussed above, please provide more details.

Moreover, I recommend regularly reconciling your bank statements to stay on track. For further guidance, please refer to this article: Reconcile an account in QuickBooks Online.

Let me know if you have further concerns about the EFTPS or need assistance with QuickBooks. Keep safe.