Updating payroll taxes in QuickBooks Desktop is essential for ensuring compliance with current tax laws and accurate employee paychecks. Here's a detailed guide on how to update payroll taxes in QuickBooks Desktop:
1. Ensure QuickBooks is Up-to-Date
Before updating payroll taxes, make sure your QuickBooks Desktop is running the latest version. This ensures compatibility with the latest payroll tax updates.
- Open QuickBooks Desktop.
- Go to the Help menu and select Update QuickBooks.
- Click on the Update Now tab.
- Ensure the option to include the latest tax table updates is checked.
- Click Get Updates.
Restart QuickBooks after the update completes.
2. Verify Your Payroll Subscription
Confirm that your QuickBooks Payroll subscription is active, as you need an active subscription to receive payroll tax updates.
- Go to the Employees menu.
- Select My Payroll Service and then Manage Service Key.
- Ensure that the service key is valid and that your subscription is active.
3. Download the Latest Payroll Tax Table
QuickBooks regularly releases payroll tax table updates, which include the latest federal and state tax rates. To download these updates:
- Open QuickBooks Desktop.
- Go to the Employees menu.
- Select Get Payroll Updates.
- Click Download Entire Update.
Wait for the update to download and install. QuickBooks will notify you once the download is complete.
4. Update Payroll Tax Forms
QuickBooks also updates payroll tax forms to align with the latest tax regulations. To update these forms:
- Open QuickBooks Desktop.
- Go to the Employees menu and select Payroll Tax.
- Choose Update Payroll Tax Forms.
QuickBooks will automatically download the latest versions of the necessary tax forms.
5. Review and Update Tax Table
Occasionally, you might need to review and manually update tax tables if there are issues with automatic updates. To do this:
- Go to the Employees menu.
- Select Payroll Tax and then Update Payroll Tax Table.
If you see a notification or error regarding the tax table update, follow the instructions provided to correct the issue.
6. Verify Tax Rates and Setup
After updating, verify that the tax rates and payroll setup are correct:
- Go to the Lists menu.
- Select Payroll Item List.
- Check that all payroll items, including tax rates, are accurate and reflect the latest rates.
You can edit tax items by:
- Clicking Payroll Item List.
- Selecting the payroll item you want to edit and clicking Edit.
- Adjust the tax rate or other details as needed.
7. Review Payroll Tax Liability
To ensure that your payroll tax liabilities are accurate:
- Go to the Reports menu.
- Select Employees & Payroll and then Payroll Tax Liability.
Review the report to ensure that all amounts match the latest tax tables and that there are no discrepancies.
8. Consult QuickBooks Support
If you encounter issues or if the updates do not apply correctly:
- Visit the QuickBooks Support website.
- Use the online chat or support options to get assistance.
- You can also call QuickBooks support at +1-800-845-9666 for further help.
9. Regular Maintenance
Regularly check for updates and review your payroll tax setup to ensure ongoing compliance and accuracy. QuickBooks usually releases tax table updates quarterly, so staying current with these updates is crucial for smooth payroll operations.
By following these steps, you can ensure that your QuickBooks Desktop payroll taxes are up-to-date, helping you stay compliant with the latest tax regulations and ensuring accurate employee payroll.