Intuit is rolling out changes in how it handles 'automated taxes' for QuickBooks Online Payroll customers starting this month through the end of September. The changes will go into effect on October 1, 2024, for existing customers in AZ, CA, FL, GA, IL, KS, NC, NV, TN, TX, and VA.
The automated tax changes for QuickBooks Online Payroll customers involve automatically withdrawing taxes every time a payroll is processed when there are changes in tax amounts due, rather than withdrawing taxes at the end of the tax period when the payroll taxes are set for payment. Customers can preview the withdrawal amounts when running payroll and see upcoming or past withdrawals in the Payroll Tax Center (as shown below).
If you have 'automated taxes' and 'automated payroll' turned on, the Primary Admin must consent to these changes by clicking the Got It acknowledgment in the notification (shown above); otherwise, they must turn off 'automated taxes' via payroll settings. See the description of how to make that change later in this article.
While 'automated taxes' is an option for QuickBooks Online Payroll, many QBO Payroll customers use it since it is the default payroll setting. Customers can stop using automated taxes by going to Payroll Settings, then Taxes and Forms, then Automated Taxes and Forms, and then selecting Turn-off.
If you continue to use automated taxes, you must also be aware that Intuit will make a one-time withdrawal on October 1, 2024, for any unpaid Federal Unemployment Taxes (FUTA) that have accrued (to date).
In addition, if you continue using 'automated taxes' with QuickBooks Online Payroll in the future, you will find:
- Any time the amount of taxes you owe changes, Intuit will automatically withdraw the amount needed to cover it. This will happen when payroll is processed, a past payroll is adjusted, or a tax rate is updated.
- You can see how much money is needed to fund payroll taxes and direct deposits in Preview payroll.
- Intuit will email a receipt for each tax withdrawal and post the amount in the Payroll tax center.
- The withdrawn tax funds will pay the scheduled tax liabilities when due.
- Withdrawals for payroll taxes and direct deposit will be separate, and Intuit will email receipts for each.
- By participating in 'automated payroll' as a feature of QuickBooks Online Payroll, you authorize Intuit to hold payroll tax funds on your behalf until they are due to the relevant taxing authority, and you acknowledge your understanding that no interest or earnings will accrue on your behalf from any funds held by Intuit.
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