Payroll Service

Manage payroll forms, tax liabilities, and manual entries

If you use an external payroll provider or need to adjust your payroll data in QuickBooks Online, there are specific tools and workflows to keep your records accurate. This guide covers how to handle prior payroll data, set up reminders, and manage tax rates.

Enter prior payroll history (YTD adjustments)

If you processed payroll using an external service and are now moving to QuickBooks, you can enter the Year-to-Date (YTD) totals so your employee records and tax reports are complete. This process summarizes historical data; it does not create individual paycheck transactions or impact your bank register.

1. Go to Payroll, then select Employees.
2. Select the employee you want to update.
3. Select Edit next to “Pay.”
4. In the “How much do you pay [employee]?” section, select Edit.
5. Scroll to the “Year-to-date” section and enter the totals for each pay item and tax.
6. Select OK when finished.

Repeat this for each employee. Once entered, this data appears on payroll reports and tax forms.

Clear tax liabilities for prior payroll

After entering YTD adjustments, you may see a balance due in the Payroll Tax Center for taxes that were already paid by your previous provider. To clear these balances without affecting your bank account, record the payments that were made in the past.

1. Go to Taxes, then Payroll Tax.
2. Select Pay Taxes.
3. Select the tax you need to clear, then choose Record Payment.
4. In the “Payment date” field, enter the date the original payment was made.
5. In the “Bank account” field, select the account where the money originally came from.
6. Enter the payment amount and any reference number.
7. Select Confirm.

This records the liability payment in QuickBooks and zeroes out the amount owed for that period.

Set up reminders for tax filings

QuickBooks Online prompts you for upcoming tax filings based on your active payroll subscription. If you do not use an Intuit payroll service, you will not receive automated in-product alerts for forms like the 941, 940, or W-2. However, you can create custom reminders to keep track of deadlines.

1. Select the Gear icon at the top right, then All Lists.
2. Select Recurring Transactions.
3. Select New to create a reminder.
4. Choose Reminder as the “Transaction type.”
5. Name the reminder (e.g., “Quarterly 941 Filing”).
6. Set the “Type” to “Unscheduled.”
7. Enter the template details and select Save.

You can also use the Tasks feature (if available in your view) or an external calendar to track these dates manually.

Correct payroll tax rates

If a payroll tax form (such as a state unemployment report) calculates taxes using an outdated rate, you must update the payroll tax item first. QuickBooks uses the rate currently on file for the tax year to generate forms.

1. Go to Taxes, then Payroll Tax.
2. Under the “Tax” column, select the specific tax you need to edit (e.g., State Unemployment).
3. Select Edit or Rate.
4. Enter the correct rate for the current year.
5. Select Save.

After updating the rate, run your payroll report again (such as the Payroll Tax Summary) to verify the calculations. If the liability balance is still incorrect due to prior checks calculated at the wrong rate, you may need to make a liability adjustment. Always consult your accountant or the official Intuit guidelines before making manual adjustments to tax liabilities.

Delete unused state payroll forms

QuickBooks Online manages the list of available state payroll forms automatically based on your payroll service and the tax agencies associated with your employees. You cannot manually delete state forms from the list.

If you see forms for states where you no longer have employees or tax obligations:

• Ensure the employee profiles are updated with the correct “Work location” and “State for tax” info.
• If you have no employees in that state, the forms will eventually stop appearing as actionable items, though the form template may remain in the system archive.

For specific questions about your payroll service tier or available forms, check your payroll subscription details or contact support.