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February 12, 2023
Question

Why do i have unpaid income taxes when I have full service payroll?

  • February 12, 2023
  • 1 reply
  • 0 views
I am seeing notices of action needed for OH Income Tax which is past due for 3 quarters.  Why is this happening when I have full service payroll.  Why was it not automatically paid and how can I fix this?

1 reply

DHeraV
February 13, 2023

Welcome to the Community, @papsysplace.

I appreciate you posting your concern about unpaid income taxes in QuickBooks Online (QBO) Payroll. Let me provide information about the said concern.

For QuickBooks to automatically pay and file your federal and state taxes, make sure that the automated tax payments and form filing is turned on in your QBO account. 

Here's how:

1. On your QBO account, go to the Gear icon, then select Payroll Settings.
2. In the Taxes and forms section, click Edit.
3. Tick the Automate taxes and forms box.
4. Once done, click on Save.

To set up e-file and e-pay, kindly refer to this article: Set up e-file and e-pay in QuickBooks Online Payroll.


Moreover, when dealing with penalties and interest paid to tax agencies, you should not record these together with the tax due. It will result in an overpayment. You should record these payments as an expense in your QuickBooks Online.

For detailed information, kindly visit: Recording prior tax payments.


Additionally, I'll also share this article you can read if you want to learn how to handle underpaid taxes in QuickBooks Payroll: Resolve a payroll tax underpayment.


Feel free to leave a reply if you have additional queries about tax payments in QBO Payroll. The Community team always has your back. Have a good one.