How do I record a $0 state withholding payment?

Hi there, dawn-wenzel.

First, let's verify with the Wisconsin Department of Revenue whether you still need to report $0 withholdings, as state requirements have changed. Let’s see how we can address this effectively.

If you need to maintain internal records for $0 withholdings, creating a journal entry is a viable option. Here are the step-by-step instructions on how to record a zero amount for state withholding payment in Wisconsin:

1. Log into your accounting system.
2. Navigate to the section where you can create a Journal Entry.
3. Set the date to correspond with the end of the payroll period.
4. For the Debit entry, use the Payroll Expense account with $0 (or $0.01 if $0 is not permitted).
5. For the Credit entry, use the State Withholding Liabilities account with the same amount.

For comprehensive guidance on moving money and balancing your books, refer to this article: Create journal entries in QuickBooks Online.

Additionally, you can find information on how to pay and file state and local taxes using QuickBooks e-pay and e-file here: Pay and file payroll taxes and forms electronically in QuickBooks Online Payroll.

If you have further questions regarding withholding payment, don't hesitate to add a comment below. We'll provide continuous assistance. Have a nice one.