QB online is all of a sudden sending sale tax payable amounts to my payroll tax account and not sales tax payable. It is all automatic now. How do I correct this?

parksbarbie · ‎August 01, 2024

ShyMae

Hello, Barbie.

There are certain accounts in your QuickBooks Online account, such as the Sales Tax Payable account that can't be modified, deleted, or made inactive. That's the reason why you encounter such a message. It is automatically created when you set up sales tax and reports the sales tax for every transaction.

You can check this article for more information: Manage default and special accounts in your chart of accounts.

You can consider creating another account with the updated information. Afterward, edit the default account and merge both. However, making these changes can potentially affect your books, so it's best to consult your accountant before proceeding.

Here are some detailed steps to guide you through this process:

Go to the Transactions menu, then Chart of Accounts.
Click +New to create a Sales Tax Payable or Payroll Tax Payable account with updated information. Create a different account name, for example, Payroll Tax P.
Once done, Save.

Now open the default Sales Tax Payable or Payroll Tax Payable. Edit the name to the same as the account you created above. Please follow these steps:

On the Chart of Accounts page, locate the default account. Click Edit.
Update the name to Payroll Tax P.
Tick the Yes, merge accounts option. Save.
Finally, edit the account you created once again and update the name. Hit Save.

For additional resources, I'm adding these articles to help manage your accounts and help you choose the appropriate detail type for your transactions:

Consulting your accountant will ensure your financial records are correct and up-to-date. They can also help you review your accounts and offer you alternative approaches to fix this.

View solution in original post

MichaelaS

Let me share insights and ways to help you fix the sudden posting of the sales tax to your payroll tax account, Parks.

In QuickBooks Online (QBO), sales tax payable should be classified separately from payroll tax. Since sales tax was posted automatically to the payroll account, let's first verify the detailed type of sales tax payable account to determine if it has incorrectly classified as payroll tax payable. If modified, edit the detailed type back to sales tax payable to correct the entries. Here's how:

1. Go to the Gear icon and click Chart of Accounts under Your Company section.
b1dfd5bd-5421-4a6a-b249-263e46d0c1df.default.png
2. Locate the sales tax payable account.

3. Check the Detailed type and check if it's set to payroll tax payable.

4. Click the View register dropdown, and choose Edit.

5 .In the Detailed type dropdown, select Sales tax payable to correct it, then click Save.

On the other hand, if the detailed type hasn't changed and the sales tax is still being posted to the payroll account, I recommend contacting our Payroll Support team to investigate the situation and help you further to correct them.

Sign in to your QuickBooks Online company.
Select Help at the top right.
Select or type Contact Us.
Enter a brief description of your concern.
Choose a way to connect with us: Start a chat or Have us call you.

I've also attached an article that will assist you in efficiently matching your accounts: Reconcile accounts in QuickBooks Online.

Keep us posted if you have other questions about tax concerns. I'll be around to help. Take care.

parksbarbie

When I click edit and look at detail type it is blank (for sales tax payable account) when I change it to sales tax payable it says "you can't change or delete this account because it tracks sales tax amounts"

when I look at the Payroll tax payable account and edit it is also blank and when I change it to payroll tax payable it also says "you can't change or delete this account because it tracks sales tax amounts"

I can not change either of them???

parksbarbie

Any ideas how to fix this?

ShyMae

Hello, Barbie.

There are certain accounts in your QuickBooks Online account, such as the Sales Tax Payable account that can't be modified, deleted, or made inactive. That's the reason why you encounter such a message. It is automatically created when you set up sales tax and reports the sales tax for every transaction.

You can check this article for more information: Manage default and special accounts in your chart of accounts.

You can consider creating another account with the updated information. Afterward, edit the default account and merge both. However, making these changes can potentially affect your books, so it's best to consult your accountant before proceeding.

Here are some detailed steps to guide you through this process:

Go to the Transactions menu, then Chart of Accounts.
Click +New to create a Sales Tax Payable or Payroll Tax Payable account with updated information. Create a different account name, for example, Payroll Tax P.
Once done, Save.

Now open the default Sales Tax Payable or Payroll Tax Payable. Edit the name to the same as the account you created above. Please follow these steps:

On the Chart of Accounts page, locate the default account. Click Edit.
Update the name to Payroll Tax P.
Tick the Yes, merge accounts option. Save.
Finally, edit the account you created once again and update the name. Hit Save.

For additional resources, I'm adding these articles to help manage your accounts and help you choose the appropriate detail type for your transactions:

Consulting your accountant will ensure your financial records are correct and up-to-date. They can also help you review your accounts and offer you alternative approaches to fix this.

Topics

Training

Community

Resources

QB online is all of a sudden sending sale tax payable amounts to my payroll tax account and not sales tax payable. It is all automatic now. How do I correct this?