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lindseyspringste
Level 1

Federal Tax Deposit Caused Overdraft...

Yesterday, the payment made automatically by QBO caused our business bank account to overdraft. Today, it appears the IRS has credited this back to our account. The bank is just as confused as we are. I want to turn off the automatic payroll tax deposits so it doesn't attempt to draw until we have funds to cover it. I cannot find out how to do this. Any help?

 

We looked everywhere for communication from the IRS or QBO and have found nothing.

1 Comment 1
AnneMariee
QuickBooks Team

Federal Tax Deposit Caused Overdraft...

Hi there, lindseyspringste.

 

Let's go to your payroll settings to turn off automatic payroll tax deposits.

 

When you choose to automate payroll taxes and forms, QuickBooks will automatically pay and file your federal and state payroll taxes. However, if you choose not to, you can either initiate payments using QuickBooks or pay the correct agencies through their website.

 

To turn automatic taxes off, please follow these steps:

 

  1. Click the Gear icon.
  2. Under Your Company, select Payroll settings.
  3. Click the pencil icon in the Taxes and forms section.
  4. Untick Automate taxes and forms.
  5. Pick a plan on how to handle your taxes.
  6. Hit Save. Then, Yes if a prompt appears.
  7. Click Done.

 

Once done, QuickBooks will no longer pay and file your payroll taxes for you. This way, you'll not worry about automatic tax payments causing your bank account to overdraft.

 

You can read this article to learn more about the options to pay and file state and local taxes using QuickBooks: Set up QuickBooks Online Payroll to pay and file your payroll taxes and forms.

 

For future use, here's an article on generating payroll reports to view essential insights about your business and employees: Run payroll reports.

 

Please don't hesitate to leave a reply if you have any other questions automatic taxes in QuickBooks. I'm just one post away to help you out.

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