Updated Payroll Tax Withdrawals with QuickBooks Online: What You Need to Know
Monday, July 15, 2024
At J&S Accounting, we prioritize keeping you informed about the latest updates affecting your business operations. Recently, QuickBooks announced significant changes to its payroll tax withdrawal process. As your trusted accounting partner, we're here to break down these changes and guide you through what they mean for your business.
What's Changing?
QuickBooks is adjusting how it handles payroll taxes for customers who have chosen to have their taxes automatically paid and filed. Previously, QuickBooks would withdraw these taxes when they were due. Now, QuickBooks will withdraw the necessary funds every time payroll is processed, or there's a change in your payroll tax liabilities.
Additionally, on the date you receive this change, you will receive a one-time withdrawal for federal unemployment (FUTA) taxes. QuickBooks is revising the Payroll Section of its Terms of Service to reflect these updates.
Key Dates to Remember
- For New QuickBooks Payroll Subscribers: The changes will be rolled out from August 2024 through the end of September 2024.
- For Existing Clients in Specific States: Effective October 1, 2024, these changes will apply to clients in the following 11 states: AZ, CA, FL, GA, IL, KS, NC, NV, TN, TX, and VA.
- For Existing Clients in Other States: You will receive notifications before these changes occur in your state in the coming months.
What Actions Do You Need to Take?
Continue Using Automated Taxes:
- Action Required: To continue with automated tax payments and filings, log in to QuickBooks and confirm by September 30, 2024. Instructions will be emailed to you shortly.
- No Action Needed: For clients who manually run payroll, there's no need to take any action to continue using automated taxes.
Stop Using Automated Taxes:
- Action Required: Go to Payroll Settings, find Taxes and Forms, and turn off Automate Taxes and Forms. Please remember that if you turn off automated taxes, you must manually pay and file your payroll taxes by the deadlines.
Not Currently Using Automated Taxes:
- No Action Needed: You will receive an email with the updated Terms. If you wish to start using automated taxes, follow the setup instructions provided by QuickBooks. Once activated, QuickBooks will notify you before implementing the changes.
Specific Impacts Starting October 1, 2024
For clients with employees in the specified 11 states:
- FUTA Taxes: For any unpaid FUTA taxes to date, a one-time withdrawal will be made. QuickBooks will send reminders a week before.
- Ongoing Adjustments: Whenever your tax obligations change (due to running payroll, adjusting past payrolls, or tax rate updates), QuickBooks will automatically withdraw the required amount.
- Authorization: Using this service, you authorize Intuit to hold your payroll tax funds until they are due to the taxing authority. Note that no interest or earnings will accrue on these funds.
How These Changes Benefit You
- Streamlined Process: Less effort is needed to determine what taxes are due and when they'll be withdrawn.
- Financial Management: Helps avoid missed payroll tax payments and ensures you have the necessary funds set aside.
Final Thoughts
We understand that changes in payroll tax processes can be challenging. However, these updates are designed with your convenience in mind, aiming to simplify your payroll management and ensure compliance with tax obligations. If you have any questions or need further clarification, please don't hesitate to contact us at J&S Accounting. We're here to support you every step of the way.
About J&S Accounting
At J&S Accounting, we provide expert bookkeeping services tailored to the unique needs of small businesses and non-profits. We recognize the challenges that come with maintaining accurate financial records and how vital this is for the smooth operation and growth of your business. As a woman and minority-owned firm, we’re proud to offer our expertise to businesses in Savannah, GA, and across the nation, helping them navigate financial complexities and achieve better financial management.
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Disclaimer:This content is for information purposes only and should not be considered legal, accounting, or tax advice, or a substitute for obtaining such advice specific to your business from a professional accountant. Additional information and exceptions may apply. Applicable laws may vary by state or locality. No assurance is given that the information is comprehensive in its coverage or that it is suitable in dealing with a customer’s particular situation. J&S Accounting does not have any responsibility for updating or revising any information presented herein. Accordingly, the information provided should not be relied upon as a substitute for independent research. J&S Accounting does not warrant that the material contained herein will continue to be accurate, nor that it is completely free of errors when published. Readers and viewers should verify statements before relying on them.
© 2023 J&S Accounting. All Rights Reserved.
Disclaimer
This content is for information purposes only and should not be considered legal, accounting, or tax advice, or a substitute for obtaining such advice specific to your business from a professional accountant. Additional information and exceptions may apply. Applicable laws may vary by state or locality. No assurance is given that the information is comprehensive in its coverage or that it is suitable in dealing with a customer’s particular situation. J&S Accounting does not have any responsibility for updating or revising any information presented herein. Accordingly, the information provided should not be relied upon as a substitute for independent research. J&S Accounting does not warrant that the material contained herein will continue to be accurate, nor that it is completely free of errors when published. Readers and viewers should verify statements before relying on them.