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December 22, 2021
Question

When I enter the tax payments it goes to our payroll account instead of our tax even though I select the tax account in the tax payements how can I get this to process

  • December 22, 2021
  • 1 reply
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1 reply

MaryLandT
December 22, 2021

Let me help settle your tax payments in QuickBooks Online, IntegrityCustomBuilders.

 

Entering tax payments shouldn't affect any account on your register since they're non-posting transactions. They'll only clear taxes from showing due and record the deposits.

 

To record your tax payment:

 

  1. Select Taxes, then Payroll Tax.
  2. Select the Payments tab.
  3. Review the payments listed and locate the tax you want to record a payment for.
  4. If the payment is listed, choose the option Mark as paid then select Yes, mark paid. Note: This will be a non-posting transaction. It will not affect the bank register, but it will clear the taxes from showing due and record the deposits.
     

If the payment is not listed, continue with the steps below.
 

  1. Select Prior tax history.
  2. Choose Add Payment.
    Note: This will be a non-posting transaction. It will not affect the bank register, but it will clear the taxes from showing due and record the deposits.
  3. Select tax type and liability period (the period that the taxes were accrued) then enter:
    • Payment Date
    • Check Number (optional)
    • Notes (optional)
    • Tax Item Amounts
  4. Click OK

If your payroll tax expenses are downloaded from your bank, make sure to update your payroll accounting settings. Let me show you how to do it.

 

  1. Go to Settings ⚙, then Payroll settings.
  2. Select Edit ✎ next to Accounting. 
  3. Click Edit ✎ to update a specific section.
  4. Choose which account the transaction of the specific payroll item should go, then select Continue.
  5. If you need to apply these changes to past transactions, select Edit ✎ next to Want to update existing transactions.
  6. Add a Start Date

 

After that, go back to the Banking page and categorize your payroll expenses. Check out this link to help manage your bank transactions: Learn how to review downloaded bank transactions and put them in the correct accounts.

 

Keep me posted if there's anything else I can help you with entering tax payments in QuickBooks. I'm always around here in the Community to guide you through the process.