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service5
October 1, 2023
Question

Payroll Tax Payments

  • October 1, 2023
  • 1 reply
  • 0 views

I'm a solo owner/operator LLC and I just realized that the monthly Federal Tax Business Payments on my paychecks are different every month.  For example, for January it was $100.41, February it was $200.82, and for March it was 301.25.  Then in April it goes back to $100.41 and repeats.  My paychecks are the same amount every time.  Why would the monthly payroll taxes paid change like that?  The amount it shows being withheld on my paycheck with respect to Federal Income Taxes, Social Security, and Medicare are the same each time, but it increases throughout the quarter with respect to the business taxes paid at the end of the month.  Any advice would be greatly appreciated.    

1 reply

JessT
JessT
October 1, 2023

Hi service5,

 

I understand your concern about the fluctuating monthly Federal Tax on your paychecks, given you have a fixed pay.

 

I recommend reaching out to our QBO Support so they can use a screen-sharing tool to review your transactions and address this issue. They can help analyze your tax calculations and provide assurance and assistance. Here, I'm unable to do further checking for security reasons.

 

  1. Go to the Help menu and choose the Search tab.
  2. Click Contact Us at the bottom.
  3. Enter a summary of your concern: Federal tax calculation varies even if the pay is the same.
  4. Click Continue and choose Chat or Callback.

 

If you have other concerns about payroll, please don't hesiate to return to this thread. I'll be happy to help you again. Take care!

S
service5Author
October 3, 2023

OK thanks!  Problem solved after getting help from support.  The problem is the way that the payroll settings are setup with respect to pay schedule for a specific employee and when exactly the payroll is deposited into the bank "i.e the "Pay Date".  On my account the settings were causing the payroll deposits to hit my bank account one day after the month and in other cases one day before, so some months would only have one pay check applied to it, while other months had two checks, and another would have three checks, so the federal taxes that my business was paying would fluctuate based on the exact month that the checks were being deposited.  It wasn't that I was overpaying taxes in any way, just paying different amounts each month because of how the settings were adjusted for payroll deposit dates. 

 

For anyone else out there interested in this fix, just go to    Payroll / Employees / "click on employee" / 'click edit on Employment Details" / "click the pencil to edit the pay schedule" / then adjust settings to make sure the "Pay Date" is dropping on the appropriate date.

R
rvrfrf
October 3, 2023

Thanks for getting back with the Community, service5.

 

I'm happy to hear JessT and our Customer Care team were able to help you obtain a better understanding of how payroll deposit date settings can affect monthly tax amounts.

 

You'll also be able to find many detailed resources about using QuickBooks in our help article archives.

 

Please feel welcome to send a reply here or create a new thread if there's ever any questions. The Community's always here to help. Have a lovely Tuesday!

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