How do I categorize Tax Payments that come in through bank feed?

Thank you for the detailed information, @SG91.

I'm here to share with you the steps on how to fix the differences when matching payments in QuickBooks Online.

The best way we can do to fix payment differences is to use the Resolve Difference feature. This process helps match your transactions by resolving its difference until it will be equal to zero. 

Here's how:

1. Open your QuickBooks Online account, then click on Banking at the left pane.
2. Go to the Banking page, then select the payment transaction under the For Review column.
3. Select the Find other records or Find match button to open the Match transactions window.
4. By default, the Match transactions window lists All transactions within the date range, but you can narrow the results.
   • Use options on the Show drop-down menu to specify the type of transaction you're looking for.
   • If the transaction you're looking for is outside the default date range, select the From and To date fields to change the dates 
5. If the amounts are different, you can locate additional matched transactions, or select Resolve Difference to open the Add resolving transactions fields.
   • If the bank feed's amount is lesser than the amount in QuickBooks, enter a negative amount in the Add resolving transactions section. If it's greater than, enter a positive amount.
6. Add the Category and Amount (and, optionally, Payee) of a resolving transaction until the difference equals zero.
7. If necessary, you can use the Add new transaction button to add multiple resolving transactions.
8. Select Save.

To  learn more about this process, check out these articles about categorizing online banking transactions as well as entering an adjustment to resolve the difference in a match:

• Categorize and match online bank transactions in QuickBooks Online
• Why do I occasionally notice penny rounding differences?
• Resolve the difference in a matched transaction

Also, feel free to read this article in case you need additional reference while working with your bank in the future.

This should help you resolve the tax payment difference on your QuickBooks. If you have any other questions, mention me in the comment section below. I'm a few clicks away to help. 

Keep safe!

Angelyn_T, that was very helpful. Since I was fixing an old tax payment I deleted that payment and redid it (with same dates) and it found the match! Just what I was hoping to do. However, it made me see a different problem. We do most tax payments electronically, but we did make a couple checks out to pay for some taxes due. I added those under "Bills" to remind myself to make the check in time and so when the check was cashed and it came out of the bank feed it matched with Bill Payment instead of Tax Payment. Does this mean it's recorded twice? Or is there a way to link the bill payment to the tax payment? Or is there another way I should have done this payment? Thanks.

Let me help you from here, SG91.

You're right, recording both bill and tax payments will create a double entry. You're unable to link both transactions, though.

What we can do is to delete the bill and bill payment. Then, record the tax payment on the Payroll Tax page. It will help you have accurate reports or records. Once done, you can match the downloaded transaction to the payroll payment. Then, follow the steps above on how to resolve any differences.

Also, you can get email reminders for your payroll taxes. It will inform you about any payroll submission dates, such as tax payments. Here's how:

1. Click the Gear icon.
2. Select Payroll settings.
3. Under Preferences, click Emails.
4. Tick the Tax Payment Reminders box, then click OK.

For more information, please refer to this article about getting email reminders.

If you need more help, please feel free to keep in touch. We're just a comment away.

How would someone do this through QuickBooks Desktop? 

I'll help you fix the differences when matching payments in QuickBooks Desktop. 

To categorize tax payments that come in through the bank feed in QuickBooks Desktop, you can follow these steps:
 

1. Go to the Banking menu.
2. Review the transactions in the Bank Feeds Center to identify tax payments.
3. Categorize the tax payments under the appropriate liability account, such as "Payroll Liabilities: SUI Employer" for unemployment tax payments.
4. Use the Resolve Difference feature to match transactions and resolve any discrepancies until they equal zero.
    

For more details about matching your transactions, please see this article: Add and match Bank Feed transactions in QuickBooks Desktop.

Additionally, I've added this article that'll help you review your accounts in QuickBooks to make sure they match your bank and credit card statements: Reconcile an account in QuickBooks Desktop.

You can get back to me anytime if you have questions about handling your transactions. I'm still around to help you.