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A
AS80-
February 6, 2024
Solved

Penalties for late payroll tax payment

  • February 6, 2024
  • 1 reply
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Hi,

We only have one employee and do the payroll manually. I use Quickbooks Desktop.

I paid the payroll taxes late and I received a " Failure to make a proper federal tax deposit on time penalty ". I paid the penalty. How do I enter this payment in QB Desktop. I know that Penalties paid to the IRS are not tax-deductible and want to make sure I enter this transaction correctly.

 

Thank you for your help.

Best answer by JuliaMikkaelaQ

Yes, you can do that @AS80-. I'm here to guide you in adding a tax-line mapping to the expense account you created.

 

In QuickBooks Desktop, you can select a tax-line mapping for a particular account depending on your choice and the availability of it in the option. However, if you're unsure you can consult with your accountant to ensure you record the correct tax treatment. To add the tax-line mapping, you can follow the steps below for guidance:

 

  1. Go to Lists, then select Chart of Accounts.
  2. Click the Account dropdown, then select New to create a new account or Edit Account to edit an existing account.
  3. In the Optional section, select the <Not tax related> or other option referred by your accountant in the Tax-Line Mapping dropdown.
  4. Select Save and Close.

 

Moreover, you can pay your non-tax liabilities like benefits, deductions, expenses, or penalties in QuickBooks Desktop.

 

If you have other concerns about managing your taxes and penalties, don't hesitate to comment back into this thread. We've got your back. Have a great day!

1 reply

G
GlinetteC
February 7, 2024

I've got the steps to record the late tax payroll payment in QuickBooks Desktop payroll, AS80.

 

I'll guide you through the steps. 

 

  1. Go to Employees at the top menu bar.
  2. Select Payroll Center.
  3. Go to the Pay Liabilities column.
  4. Select liability by putting a checkmark on the box beside it.
  5. Click View/Pay.
  6. Go to the Expenses column, under the Liability Payment - Checking page.
  7. Click Add new to add the penalty account under the Account column and the Amount..
  8. Click Save and Close.

 

Additionally, I've included this article to help you utilize QuickBooks Desktop to review and access relevant data about your company and employees: Run Payroll Reports.

 

You can post a comment below if you need more help with recording penalties or any other issues. I'll be here to lend a hand always.

A
AS80-Author
February 7, 2024

Thank you for your help.

 

However,  I cannot follow the directions given . When I click on Employee in the top menu bar, I do not have the same lay out. I have no Payroll center, I have of course a Pay Taxes and Liabilities line  (not a column) but when I click on Pay liabilities, there is no box beside it , no view/pay and no expenses column. Apparently in my version, I would need to create a payroll item called "penalties" before I can pay .

I am Using Quickbooks Desktop Premier Professional Services Edition  2021. It may explain why the display is so different.

 

C
CamelleT
February 7, 2024

Let me help you enter your late payroll tax payment, AS80-.

 

In QuickBooks Desktop (QBDT), when dealing with penalties paid to tax agencies, you can record them by creating an expense item and adding this to a check. Please follow the steps below:

 

Create an expense item

 

  1. Go to the Vendors tab and choose Enter Bills.
  2. Complete the necessary fields. Then, select Expenses. 
  3. Choose an account from the Account column. Input the amount of the penalty. Label it tax penalty in the Memo column.
  4. Hit Save & Close.

 

Write a Check

 

  1. Go to the Banking tab and choose Write checks.
  2. Select the account where the money will be taken from in the Bank Account field.
  3. Complete the other fields such as the date, amount, address, etc.
  4. Add the expense item you created for the tax penalty in the Expenses tab.
  5. Hit Save & Close.

 

Moreover, I'll add this article to help you run, print, and customize payroll reports in QBDT Payroll: Run payroll reports.

 

Comment below if you have follow-up questions about managing your late payroll tax payment. I'll be around to assist. 

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