What’s changing?
We're changing how we handle automated taxes for QuickBooks Online Payroll customers. Instead of automatically withdrawing and paying payroll taxes when due, we’ll automatically withdraw taxes every time payroll is processed or when there’s a change in what you owe. Customers will be able to preview the withdrawal amounts when running payroll and see upcoming or past withdrawals in the Payroll Tax center.
We'll roll out this change to new QuickBooks Payroll subscribers starting August 2024 through the end of October.
On October 1, 2024, this change took place for existing customers who employ their entire workforce in the following 11 states: AZ, CA, FL, GA, IL, KS, NC, NV, TN, TX, and VA. These customers were notified beginning July 1, 2024.
On January 1, 2025 this change took place for more customers in other states with automated taxes enabled. These customers received an email on October 1, 2024 and a notification was posted in QuickBooks Online Payroll.
On April 1, 2025 this change will take place for the remaining customers, including those with automated taxes disabled. These customers received an email on February 1, 2025 and a notification was posted in QuickBooks Online Payroll.
Payroll Withdrawals
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For existing customers that were notified of the October 1, 2024 change
If you continue to use automated taxes, we’ll make a one-time withdrawal for any unpaid Federal Unemployment Taxes (FUTA) to date on October 1, 2024.
For existing customers that were notified of the January 1, 2025 change
No one-time withdrawal will occur, as there are no unpaid FUTA taxes at the start of the tax year.
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Here’s what to expect when you choose to have QuickBooks pay your taxes automatically:
- Any time there’s a change in the amount of taxes you owe, we’ll automatically withdraw the amount needed to cover it. This will happen when payroll is processed, a past payroll is adjusted, or if a tax rate is updated.
- You’ll see how much money you need to fund your payroll taxes and direct deposits in Preview payroll.
- For each tax withdrawal, we’ll email you a receipt and post the amount in the Payroll tax center.
- The withdrawn tax funds will be used to schedule and pay your taxes when due.
- Withdrawals for payroll taxes and direct deposit will be separate, and we’ll email you a receipt for each.
- You authorize Intuit to hold onto the payroll tax funds until they are due to the relevant taxing authority, and you understand that no interest or earnings will accrue to you for any of the money held by Intuit.
How this can help come tax time
Automated taxes and forms is included in your QuickBooks Online Payroll subscription at no extra cost. Just complete your tax setup and connect your bank account.
Automated taxes and forms:
- Can help you stay on top of tax payment or filing deadlines with QuickBooks automatically paying and filing your taxes.
- Help you avoid missing payroll tax payments from not having enough funds set aside.
Manage payroll tax payments and filings yourself
To stop using automated taxes:
Go to Payroll Settings and find Taxes and Forms. There you can turn off Automated taxes and forms.
With automated taxes disabled, you’ll need to manually pay and file your payroll taxes by the deadlines:
When you turn automated taxes on or off, it will take effect on the first day of the following month. Funds that have been withdrawn for tax periods on or after the effective date will be refunded.
Additional information
Tax setup tasks need to be completed in order for QuickBooks to be able to successfully pay your taxes automatically.
For customers with Auto Payroll, you may have received an email indicating that you need to provide consent by December 31, 2024 to keep automated taxes on. You can do so by going to Payroll Overview as the primary admin and selecting Keep using automated taxes. The bottom of the email indicates which companies require your consent.
To address these changes, we’ve revised the QuickBooks Terms of Service effective August 1, 2024. Your continued use of QuickBooks Payroll means you have read and accepted these changes. View Terms.
