Filing

Managing tax filings and payments in QuickBooks Online

QuickBooks Online helps you manage your payroll and sales tax filings efficiently. Below are answers to common questions regarding filing statuses, payment processing, and troubleshooting errors.

Checking the status of e-filed W-2 and W-3 forms

If you have already sent your W-2 and W-3 forms electronically and received no error messages, your submission was successful. You can verify the status of your e-filed forms at any time.

1. Go to the Payroll or Taxes menu.
2. Select Payroll Center.
3. Click the Related Form Activities drop-down menu.
4. Select View E-filing History.
5. Review the status listed for your forms.

Note: It is normal for W-2 forms to remain in a “Pending” or “Received” status for an extended period. The Social Security Administration (SSA) typically processes these forms in bulk closer to the filing deadline.

Recording tax payments made outside of QuickBooks

If you pay your payroll taxes (such as 941 liabilities) manually via EFTPS or another method outside of QuickBooks, you must record the payment in the system to clear your liability.

1. Go to Taxes > Payroll Tax.
2. Select Pay Taxes.
3. Select the tax payment you want to record and choose Record Payment.
4. For the payment method, select Check (even if you paid electronically).
5. In the Check number field, enter a reference such as “EFTPS” or “E-pay.”
6. Ensure the Payment date matches the date you made the external payment.
7. Select Record.

This removes the tax liability from your list of taxes due.

Understanding 941 filing and payment schedules

Your payment schedule and your filing schedule for Form 941 are determined by the IRS and may differ.

• Monthly Depositor: You may be required to make tax payments monthly.
• Quarterly Filer: Regardless of how often you make payments, Form 941 is filed quarterly.

QuickBooks Online will not allow you to file the 941 form until the quarter has ended. If you are paying monthly, continue to do so, and file the quarterly form when the quarter closes.

Changing your sales tax filing frequency

Businesses can typically file sales tax monthly, quarterly, or annually. Once you declare a frequency to your tax agency, you must adhere to it. If you need to change your filing frequency, you must first receive permission from the relevant tax agency (such as the CRA or your state department of revenue).

Once you have permission, you can update the setting in QuickBooks Online:

1. Go to Taxes > Sales Tax.
2. Select Edit (or the pencil icon) next to the specific tax agency, or go to Rates/Settings.
3. Click on Settings or Filing Frequency.
4. Change the Filing Frequency to match the agency-approved schedule.
5. Save your changes.

Troubleshooting VAT filing errors

If you receive a “failure due to departmental specific business logic in the Body tag” error when filing a VAT return, it usually indicates a data mismatch or a communication failure with the tax agency.

• Data Issues: Ensure your VAT number and identification codes are correct. The error may occur if the data transmitted does not match the agency’s records.
• Communication Issues: The error may result from a temporary connection failure.

Resolution:

1. Delete the current VAT journal entry in QuickBooks.
2. Re-create and attempt to file the return again.
3. If the error persists, check your data for accuracy. If the system continues to fail, you may need to file the return manually on paper or directly through the tax agency’s website.

Employee W-4 Filing Status options

You may notice changes or alerts regarding employee W-4 forms. It is important to distinguish between the IRS Form W-4 and the internal QuickBooks setup.

• Form W-4: The official IRS form does not have a checkbox for “Head of Household.” Employees select “Single” or “Married” (or “Married, but withhold at higher single rate” on older forms) and use the withholding calculator to determine allowances for Head of Household status.
• QuickBooks Online: The payroll interface may display a “Filing Status” field. Ensure your employees are selecting the correct federal filing status as it appears on their actual W-4 form. If an employee believes their withholding is incorrect, they should consult the IRS withholding estimator or a tax professional.

Printing year-end forms (P60)

QuickBooks Online allows you to view year-end forms, such as the P60, directly on the screen. If you need to save or distribute these forms:

1. Open the form in the QuickBooks viewer.
2. Use your computer’s screen capture tool (or Print Screen function) to copy the image.
3. Paste the image into a photo editing application (such as Gimp, Paint, or Preview).
4. Crop the image to show only the form.
5. Save the file in your desired format (such as JPEG or PDF) for printing or email distribution.