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Level 1

Quarterly Taxes Switching

I file my taxes quarterly until I get a letter to do otherwise due to my company being so small. Quickbooks auto changes my reports to monthly and my numbers are coming out wrong. I am a quarterly filer until told by the state to change.  Due to miscalculations somewhere, I have to file a adjustment. Thanks a lot. I have tried to delete the tax thing and it keeps changing it back. My 941 is off and it happened when it changed from quarterly to monthly reporting on your program. FIX IT!!

Level 15

Quarterly Taxes Switching

Let's see if some clarity is helpful:


"My 941 is off and it happened when it changed from quarterly to monthly reporting on your program."


You Pay when you reach $2,500, or at least at quarter end. This is true, whether you file a 941 quarterly or only the Annual 944 at year end.


And payroll is always based on Paycheck Dates. The 941 gets the info from your payroll, so it isn't wrong. It's based on Pay Dates, not Pay Periods. If you enable Sched B, you can review that each Pay Date is when you issued Gross Wages and each of these dates is when you incurred the tax liability.


The 941 is showing amounts owed because of paychecks in the date range of that quarter. The Sched B shows it by pay date.


Nothing happens by Month. The only thing that is by Month, is that ta Monthly Payee has until the middle of the next month, after the date of the paychecks, to send in the money or be considered Late. But if it doesn't come to $2,500, you are allowed to hold off paying, but by the third month in the quarter, you have to Pay. and it helps to pay before trying to prepare the 941. Otherwise, the 911 will show a Payment is owed.


Taxes are owed because of Each Paycheck.


"I file my taxes quarterly"


Don't confuse Paying and Filing.


The Agencies set you on a payment Cycle = schedule to avoid being Late, because of these paychecks.


You File the paperwork as Follow up, for reporting the activity that required you to Pay.


Hope that helps.

Level 1

Quarterly Taxes Switching

Let me break it down for you. I report online to the State of Kansas quarterly. They set this up. There is no option to report monthly online. I can not change this. They are the ones who tell me when to report monthly. However, quickbooks has taken it upon itself to change my reporting status in my online program to monthly. I have deleted the schedule and it keeps changing it back due to me being over the $2,500. threshold. I need to manually override the auto change issue quickbooks has put into place for some of us it does not apply to . That should be a choice someone makes in the options and not for them.


I also figured out we started some insurance and it is making my payroll numbers off. Trying to get that figured out.  This program is not so user friendly as some people assume.


Quarterly Taxes Switching

You came to the right place, @rutzconst.

I can provide you some information on why QuickBooks auto changes your filing frequency for 941


QuickBooks has a lookback period, a designated time range that is used to measure how much you previously paid in taxes, to determine your deposit schedule for federal taxes (Social Security and Medicare). Your IRS lookback period depends on if you file Form 941.


If you wish to change your 941 filing method, let me show you how:


  1. Click the Gear icon at the top.
  2. Select Payroll Settings.
  3. Under Taxes, click the link for the Federal Taxes.
  4. Click the Change or add new schedule link in the withholding section.
  5. Click the Deposit Schedule drop-down and change it.
  6. Click OK.

I've attached screenshots below to guide you through the steps.


Please continue to reach out to me if I can be of help while you're working in QuickBooks Online. Have a great rest of your day!


Level 2

Quarterly Taxes Switching

I was notified by the IRS that I must move to a semi-weekly deposit schedule. I updated it exactly as you showed above, but I get an error message saying that because I previously paid taxes in 2018, I can't update from monthly to semi-weekly. How can I fix this?

QuickBooks Team

Quarterly Taxes Switching

Hello there, Heatherm.


Thank you for joining this thread and following the recommendations given above. I can share some more insights about updating the deposit schedule to semi-weekly.


You will have to make sure that the effective date set for your schedule is 01/01/2019. QuickBooks Online automatically save and update this information once entered.


If it's the correct effective date, you will have to get in touch with our QBO Payroll Team. They have the additional tools, such as screen sharing, that will help them investigate and troubleshoot this further.


That should do it, Heatherm. Feel free to reach back to me if you have other payroll questions. I'm always here to answer them all for you. Wishing you all the best.

Level 1

Quarterly Taxes Switching

I appreciate your attempt to help. Unfortunately, it didn't help. I've been using QBs since Nov 2003 and never had a discrepancy with my quarterly reporting. I do understand the difference between filing and paying and nothing has changed so this discrepancy is out of no where. The report is exactly how I enter it into the Virginia Tax portal online and their figure of what is due is way different. I have checked the percentage rate and how it is entered and it is correctly entered just as it requires. Thanks anyway!

QuickBooks Team

Quarterly Taxes Switching

Hi there, @ELK5.


Allow me to provide some more information about tax discrepancy in QuickBooks.


If you are using QuickBooks Online, I'd suggest reaching out to our Customer Care Team. They have the ability to run a remote viewing session to help verify the main cause of the discrepancy. 


However, if you are using QuickBooks Desktop, rounded numbers can also cause discrepancies. To learn more on how to get this sorted out, you may refer to this article: Discrepancies in tax calculations.


This should get you moving today.


Please let me know if I can be of additional assistance. I'll be here to help. Have a good one.

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