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proreo
March 23, 2023
Question

How to handle Texas single member LLC with just the owner on the payroll?

  • March 23, 2023
  • 1 reply
  • 0 views

After Quickbooks support asked me why Texas has no state income tax I lost my patience and figured I'd just ask here.

 

It's a single member LLC registered in Texas, got quickbooks payroll to pay the owner in hopes they would deduct income, social security and medicare tax and file all forms with the appropriate agencies.

 

Owners are not required to pay FUTA or state unemployment, so the owner is set up as an employee exempt from these payments. Payroll ran fine deducting federal income, social security and medicare taxes.

During the setup support was able to save "appliedfor" in one field that normally would show Texas unemployment account number. We rejoiced too soon.

 

Now Quickbooks is asking : 

TO DO LIST
Provide critical tax information ASAP.
We're missing some important information we need to pay and file your payroll taxes.
 
I am stuck on this page  : 

Let’s confirm your tax info

We’ll use this info to set up online tax payments. If any numbers are missing or incorrect, it can result in late payments or notices.
 
Because the validation fails:

Texas tax

Account Number
//field shows "Ap-pliedf-o"
 
Validation error: Enter a 9-digit valid Account Number
 
 
I am thinking to enter a bogus number but it doesn't feel right.
 
How did you solve this?
 
Thanks

 

1 reply

L
LeizylM
March 23, 2023

Hi there, proreo. 

 

I'm here to ensure you're able to enter the Texas Tax in QuickBooks Online (QBO). 

 

You'll just need to complete the payroll setup in QBO. Texas numbers require 11 digits. We can use the number zeroes to proceed. 

 

Here's how:

 

  1. Click the Gear icon in the upper right-hand corner of your Home Page.
  2. Under Your Company, click Payroll Settings.
  3. Click the Edit pencil icon under the Texas tax section.
  4. Enter your confirmed tax number.
  5. Once done, hit OK, then Done.

 

For your reference, you can check out this link on how to add or edit your state account number: Changing a state account number.

 

Feel free to leave a comment below if you have other concerns about setting up your state payroll tax. We're always here to back you up.

P
proreoAuthor
March 23, 2023

I think Intuit should work on this, so that we don't have to put bogus numbers in the system.

 

I am also attaching the "funny" screenshot when your colleague asked me why Texas doesn't have income tax LOL

You nonchalantly avoided that part

 

B
briddle22
December 15, 2023

hey there I am super late to this but it has been near impossible to get any help on this ONE tiny box that apparently stumps everyone at QB. Glad to see I am not the only one, and the only number that "works" in that box is my EIN. So I am going with tthat I guess...??

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