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cbg492-comcast-n
October 28, 2024
Question

Since the first pay period in October payroll taxes are not auto matching. They are withdrawing on the date payroll is paid, but not posting to the following Wednesday?

  • October 28, 2024
  • 3 replies
  • 0 views
They are coming through as an expense that I have to manually add and not a tax payment.  If I try to match the tax payment does not show.  Is anything else having this issue?

    3 replies

    S
    SashaMC
    October 28, 2024

    Hello cbg492-comcast-n,

     

    Welcome to the QuickBooks Community!  So we can assist you better, is this a case where it is affecting one person's payroll or everyone's?  Knowing this information will be helpful as we try to resolve this matter.

     

    I am looking forward to your reply. See you soon! 

    FishingForAnswers
    FishingForAnswers
    October 28, 2024

    @SashaMC  You know very well that they are referring to QBO's ridiculous new policy on withdrawing payroll taxes every time payroll is ran.

     

    Of course it's for everybody's payroll.

      S
      ssmhc
      October 29, 2024

      I am having the same issue but the quickbooks support team has made it 10 times worse.  I have now called 3 times and been on the phone for hours each time. I called the first time because my bank transactions from 10/3 could not be matched to any payments even though the money came out of my bank account. The QB person said it was a known issue and deleted transactions because they were listed under quickbooks payroll and did not go under the respective tax agencies. I called again and the guy I spoke to recreated the transactions as expenses and said that would fix my issues.  Well I noticed yesterday that quickbooks is now saying I made an extra payment to the IRS and that I need to contact them for a refund and press RESOLVE the issue on QB. I Called again and todays woman was worse than the other two... just kept telling me I had to contact my accountant and the IRS to see if I actually overpaid. She could not help me at all. The only thing I got out of her is YES, WHILE THE MONEY IS SHOWING IT CAME OUT OF MY BANK ACCOUNT, THE TAXES ARE NOT ACTUALLY BEING PAID YET? MAYBE? WHO KNOWS? I am on hold with the IRS now to figure out what has actually been paid for my 941 and 940 taxes since both have been taken out of my bank account! The 940 taxes are generally not paid until January so why did they take it out of my account now??? I have now deleted the  expense transactions that were created to try to figure out if that will help. The overpayment went away but now I am trying to figure out if anything was actually paid to the IRS yet or not. Absolute nightmare!

        FishingForAnswers
        FishingForAnswers
        October 29, 2024

        @ssmhc  Unless the IRS has assigned you to a payment schedule that is more frequent than monthly, then no, the IRS has not received the money that is being taken out of your bank account each payroll.

         

        QuickBooks is taking money for taxes every time you run payroll.

         

        QuickBooks is not necessarily paying it every week; the payment will still be submitted according to your normal tax deposit schedule, be that weekly, biweekly, monthly, quarterly, or yearly.

         

        Yes, they are doing this primarily to earn interest on their customer's money while it's in limbo.

         

        No, they will not change their mind.

        M
        Miles1000Watts
        February 7, 2025

        It's February 2025, nearly 4 months later, and I am experiencing this for the first time.  I take it this is still unresolved?  We now have to manually split the bank transactions to properly allocate the lump sum tax withdrawals to the assign it to the correct accounts? Why pay Intuit for automated taxes now if it now creates extra work?

        J
        Jovelyn_M1
        February 8, 2025

        We value your effort in taking the time to manually separate the bank transactions for the correct allocation of lump sum tax withdrawals, Miles1000Watts.

         

        In QuickBooks Online Payroll, taxes are withdrawn every time payroll is processed or updated, rather than only when they are due. This approach aims to provide more consistency in withdrawing tax funds on specific dates and can set aside money regularly instead of having a single lump sum taken out at tax time.

         

        In the meantime, the only way we can maintain a clear and traceable record of how tax payments are allocated is by manually splitting bank transactions with the payments made inside QuickBooks. This process is important for supporting your tax filings during audits and ensuring compliance with tax regulations.

         

        Additionally, I'm adding this resource to help you reconcile your accounts, so they always match your bank and credit card statements: Reconcile an account in QuickBooks Online.

         

        Furthermore, let me provide you with this article to view payroll tax payments and forms in QuickBooks Online Payroll: View your previously filed tax forms and payments.

         

        We aim to ensure your tax experience with QuickBooks is as seamless and efficient as possible. Don't hesitate to drop more questions. We're on standby and ready to jump back in at a moment's notice.

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