We just received notice that QB is changing when payroll taxes are paid, when using automated payroll services. Instead of withdrawing amounts when payments are due, they will be, effective January 1, withdrawing payments when payroll is processed. In effect, QB will have the use of my money for the, usually, three days; the amount of time between payroll paid and taxes due.
This will also be detrimental to my cash flow - for example, as a single employee Sub S corporation, I am able, at year end, to defer income to the following year.
If I opt out of automated payroll taxes, I will be responsible to manually pay and file our taxes.
As there are no good alternatives, it appears, to me, to be an attempt at extortion.
Hello @Gilliegeorge, welcome to the Community! We understand you might have some questions about the upcoming changes to how payroll taxes are handled in QuickBooks.
To help clarify the details of this change and how it might affect you, we've put together a detailed article with all the information you need. You can find it here: Changes with automated tax withdrawals in QuickBooks Online.
The article explains the timeline for the change, how it impacts your tax payments and cash flow, and what your options are. We encourage you to review it carefully. If you have any further questions, we're always here to help.
I got the notice as well. I just don't see how this is legal if we don't give permission for QB to take the money. We pay weekly, which means they will have use of our money for a month before taxes are paid. I currently have my accountants calculate and send me the amounts. I guess I'll keep that up. So much for automating things to make life easier.
We need to get more users and initiate a class-action suit to stop QB from stealing our money.
We need to get more users and initiate a class-action suit to stop QB from stealing our money.
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