How to Pay Payroll Taxes in QuickBooks Online
- Darra Shear
- Mar 11
- 3 min read
Managing payroll can be one of the most complex and time-consuming tasks for businesses of all sizes. QuickBooks Online, a popular accounting software, offers payroll services designed to streamline this process. One of the common questions business owners have is whether QuickBooks Online automatically pays payroll taxes. The short answer is: it depends on the payroll plan you choose.
QuickBooks Online Payroll Plans
QuickBooks Online offers different payroll plans, including:
Core
Premium
Elite
Each plan provides various features, including payroll tax payment automation. However, not all plans offer full automation of payroll taxes.
Automatic Payroll Tax Payment and Filing
QuickBooks Online Payroll offers an automated payroll tax payment and filing feature, but this is only available with certain plans. Here’s how it works:
Full-Service Payroll (Premium & Elite Plans): If you subscribe to the Premium or Elite payroll plan, QuickBooks Online will automatically calculate, pay, and file payroll taxes for you. This includes federal, state, and local payroll taxes.
Core Plan: With the Core plan, QuickBooks Online will calculate payroll taxes, but you are responsible for manually submitting tax payments and filings unless you enroll in the automated tax feature.
Enhanced Payroll (Legacy Feature): If you are using an older version of QuickBooks Desktop Payroll, tax payments may not be automatic unless you manually set them up.
How to Pay Payroll Taxes in QuickBooks Online
If your plan does not include automatic payroll tax payments, you can manually pay your payroll taxes in QuickBooks Online by following these steps:
Go to the Taxes Menu: Log in to QuickBooks Online and navigate to the “Taxes” section.
Select Payroll Tax: Click on “Payroll Tax” to view your outstanding tax payments.
Review Tax Payments Due: QuickBooks will display any payroll taxes that need to be paid.
Make a Payment: Select the tax payment you want to make and follow the prompts to submit the payment electronically or manually.
Confirm Payment: After completing the payment, QuickBooks will provide a confirmation. Ensure you keep records for compliance purposes.
Benefits of Automatic Payroll Tax Payments
Opting for automatic payroll tax payments through QuickBooks Online Payroll has several advantages:
Time-Saving: Automating tax payments reduces administrative work and allows business owners to focus on other tasks.
Avoid Penalties: Late or incorrect tax payments can lead to fines and penalties. QuickBooks ensures timely tax submissions.
Accuracy: Automated tax calculations reduce the chances of human errors.
Peace of Mind: Knowing that payroll taxes are taken care of helps business owners stay stress-free.
Things to Consider
While QuickBooks Online Payroll automates tax payments for eligible plans, there are still some things to keep in mind:
Manual Adjustments May Be Required: If there are changes in tax rates or new regulations, manual intervention may be needed.
Banking Issues: If your bank details are incorrect or there are insufficient funds, tax payments may not process on time.
Plan Limitations: Not all plans offer full automation, so ensure you are on the right plan for your needs.
Final Thoughts
QuickBooks Online Payroll provides a convenient and efficient way to handle payroll tax payments. While automation is available for Premium and Elite subscribers, businesses using the Core plan must take additional steps to ensure tax payments are made on time. To get the most out of QuickBooks Payroll, it is essential to understand the plan you are subscribed to and configure your payroll settings correctly.
If you have any questions or need help with QuickBooks Online Payroll, contact QuickBooks Support at 1-855-478-6082 for expert assistance. Their team can guide you through setup, troubleshooting, and ensuring your payroll tax payments run smoothly.
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