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jpcdis
February 27, 2025
Question

How will Intuit manage "catchup" payroll tax withdrawals in advance of their new policy on April 1?

  • February 27, 2025
  • 0 replies
  • 0 views

Hello,

 

Does anyone know when/how QuickBooks payroll is going to handle the payroll tax "catchup" withdrawals when the new "withdraw now instead of later" policy goes into effect? I'm hoping someone in a jurisdiction that has already completed this will be able to help.

 

Context:

  • This morning I received a "late tax payment" notice in QuickBooks Payroll.
  • The payment had a due date of Feb 6 (today is Feb 27, and this only just appeared).
  • After much confusion and a long call to support (during which the agent offered several explanations), we determined that this is the payroll tax for January pay period. Historically, this would have been paid in March. That is also when I had it scheduled in my cash flow projections.
  • Reviewing my account, I noticed that my payroll taxes for February pay period are now due Mar 6. That looks a lot like the new policy which isn't set to go into effect until April.

 

What's going on here?

 

It appears that Intuit, in anticipation of the policy going into effect April 1, is starting to "catch up" by 1) bringing forward taxes for February payroll and creating some "late payment" alert for January payroll. For me, this results in a very large tax payment (doubling) prior to April 1 so that the new policy can be enforced from that point.

 

Looking though my notifications from Intuit (see below), I don't see anything explaining this. The only reference to catchup has to do with FUTA, which is never a large amount.

 

Speaking with the agent, he told me "don't worry about the late payment for now, but be sure to pay it before March 31". That plus his many guesses prior didn't inspire confidence, so I thought I'd ask here.

 

Any experience with this? What are we expected to do?

 

Thank you!

 

 

******

 

If I keep using automated taxes, what happens starting April 1, 2025?
•
That day we’ll make a one-time withdrawal for any unpaid federal unemployment taxes (FUTA) to date. Make sure you transfer enough funds to your account before April 1. You’ll receive email and notification reminders a week before.
•
Other unpaid taxes for periods ending before April 1 will be withdrawn as usual before they’re due.
•
We’ll automatically withdraw payroll taxes from your bank account when payroll is processed, a past payroll is adjusted, a tax rate is updated, or any time you owe more in taxes.
•
We’ll continue to withdraw payroll taxes only for tax jurisdictions for which you complete tax setup. To find out the status of your tax setup for each jurisdiction, check the Automated taxes widget on the Payroll Overview page.
•
If you use Auto Payroll, the preview email will include the amounts that we’ll withdraw. After your payroll is processed, we’ll email a receipt and post the amount in the Payroll tax center. Go to Payroll tax center
•
You authorize Intuit to hold onto the payroll tax funds until they are due to the relevant taxing authority, and you understand that no interest or earnings will accrue to you for any of the money held by Intuit.

 

 

 

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