Hi there, Glenda.
Yes, you're correct. When you run payroll in QuickBooks Online (QBO), the software calculates and immediately withdraws the amount required for payroll taxes along with the net pay for employees. However, QuickBooks holds onto these tax funds and doesn't actually remit them to tax agencies until the official tax due date, depending on your company's tax deposit schedule.
For your first pay date tomorrow, ensure to have the funds available in your bank account to cover both the employee's net pay and the total tax liabilities, as QB will likely debit the taxes almost immediately.
This change is designed to enhance the compliance and predictability of cash flow, as it prevents a large, lump-sum withdrawal just before the deadline.
As always, our Community forum is here if you have additional questions or concerns. You can leave a reply below.
