QuickBooks Payroll is about to make paying taxes even easier for your business. Starting January 1, 2025, Intuit will introduce changes to automated tax withdrawals designed to save you time and simplify cash flow management. Here's everything you need to know about this upcoming update and how it benefits your business.

What’s Changing with Automated Payroll Tax Withdrawals?

Currently, QuickBooks Payroll withdraws your payroll taxes when they are due. Beginning in 2025, payroll taxes will instead be withdrawn every time you process payroll or when there’s an increase in taxes owed.

Here’s how the new system works:

• Taxes will be automatically withdrawn whenever payroll is processed, past payrolls are adjusted, or tax rates are updated.

• You can preview the exact withdrawal amount during payroll processing.

• For tax periods ending before January 1, 2025, taxes will still be withdrawn as currently scheduled.

• Intuit will securely hold funds until they are due to the taxing authorities, although no interest or earnings will accrue.

If you prefer to manage payroll taxes manually, you can opt out of automated taxes in Payroll Settings > Taxes and Forms. However, manual management requires keeping track of due dates and ensuring payments are made on time.

How This Helps Your Business Run Smoother

These updates aren’t just a procedural change—they significantly improve how you manage payroll taxes. Here are the benefits:

1. Simplified Tax Management

QuickBooks Payroll calculates and withdraws taxes seamlessly as part of the payroll process, removing the guesswork and effort of managing due dates.

2. Improved Cash Flow Planning

With real-time previews of withdrawal amounts, you can better manage your cash flow, ensuring you always have sufficient funds to cover tax payments.

3. Enhanced Compliance

By automating withdrawals, you minimize the risk of missed payments or late filings, which can lead to penalties. QuickBooks takes care of the details so you can focus on running your business.

QuickBooks Payroll: More Than Just Payroll Processing

QuickBooks Payroll is a full-fledged workforce management platform designed to meet the needs of growing businesses. Beyond managing payroll and taxes, it offers:

• HR tools: Access HR support to handle employee needs effectively.

• Employee benefits: Integrate benefits like health insurance and retirement plans.

• Time tracking: Sync hours worked directly with payroll for accurate paychecks.

These features make QuickBooks Payroll an invaluable tool for simplifying workforce management while supporting employee satisfaction.

What Do You Need to Do?

For most businesses, no action is required if you’re fully set up for automated taxes. To verify your setup:

1. Visit the Payroll Overview page and check the status under the Automated Taxes section.

2. You can get more information here.

If you decide to turn off automated taxes, make sure to manually pay and file taxes by the deadlines.

Take the Stress Out of Payroll with QuickBooks

This update reinforces QuickBooks Payroll as an essential partner in managing your business. From paying employees to handling taxes, and from HR tools to compliance, QuickBooks Payroll saves you time, reduces risks, and keeps your business running smoothly.

Have questions about this update or need help optimizing QuickBooks Payroll for your business? Contact Peak Advisers today for personalized guidance and support.