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Experienced Member

How to record tax payment and penalty for prior year underpayment of tax

In Quickbooks desktop Pro Plus 2018, what is the correct way to issue a payment for underpayment of FUTA tax for the previous year - 2018 -  (and penalties) when the payroll tax liability shows zero when going into pay payroll tax liabilities?

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QuickBooks Team

Re: How to record tax payment and penalty for prior year underpayment of tax

Hello there, @bcutsail.


Good to see you here in the QuickBooks Community. I'm here to help provide some details about recording tax payment in QuickBooks Desktop. 


To record the payment for FUTA in QuickBooks, you need to enter historical tax payments for the previous year. Let me walk you through the steps:

  1. At the top menu bar, click Help.
  2. Choose About QuickBooks.
  3. Press Ctrl + Alt + Y to open the Setup YTD Amount window.
  4. Click Next until you reach the Enter prior payments section.
  5. Select Create Payment.
  6. Provide the information under Prior Payments of Taxes and Liabilities.
  7. Click on Accounts Affected and select the appropriate option.
  8. Select OK.

For additional reference, you can check this article on how to enter historical tax payments in Desktop payroll


If you need further assistance with the steps, I recommend to contact our QuickBooks Desktop Support Team. They have additional tools to pull up your account and do a remote session. 


Here's how to contact our customer support:

  1. Select QuickBooks Desktop Help from the Help menu.
  2. You can also press F1 on your keyboard to bring up the same Help Panel
  3. In order to route you to the correct support expert, we need to know what type of question you have.
  4. Click Continue.
  5. We’ll provide you a few options. You choose which one is best for you.

That should do it! Please know that I'm just a post away if you have any other questions about recording tax payment. Have a good day ahead.