DeWitt Giger, LLP

Important QuickBooks Online Payroll Tax Update

What’s Changing?

 

Beginning July 1, 2026, QuickBooks Online Payroll will automatically pay and file all payroll taxes that have been properly set up within the system. As part of this update:

• Manual tax payments and filings through the Payroll Tax Center will no longer be available for those taxes.
• The option to disable Automated Taxes will be removed.

This change is intended to simplify payroll tax management by allowing QuickBooks to handle tax payments and filings automatically, helping reduce manual effort, improve compliance, and increase confidence that payroll taxes are handled accurately and on time.

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Who Is Affected?

 

Customers who enrolled in QuickBooks Payroll before November 15, 2025

These users will begin experiencing this change starting July 1, 2026. QuickBooks has already begun sending notifications regarding the update.

Customers who enrolled on or after November 15, 2025

These users are already using the updated automated payroll tax system.

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What You Need To Do

 

If your payroll tax setup is already complete:

By June 30, 2026, the Primary or Company Admin must sign in to QuickBooks Online Payroll and acknowledge the update.

If your payroll tax setup is not complete:

Tax setup must be completed before automated payments and filings can begin. To avoid payroll disruptions:

1. Log in to QuickBooks Online Payroll
2. Navigate to Payroll Overview
3. Complete all remaining payroll tax setup steps

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What to Expect Beginning July 1, 2026

 

If tax setup is complete:

• QuickBooks may process a one-time withdrawal for any unpaid FUTA taxes currently due.
• Ensure sufficient funds are available in the connected bank account.
• Any unpaid payroll taxes for periods prior to July 1, 2026, must still be paid and filed manually.
• Going forward, payroll taxes will automatically withdraw from the bank account on file when payroll is processed, prior liabilities become due, or tax rates change.
• Automated payments and filings will only apply to jurisdictions with completed tax setup.

If a new tax jurisdiction is added in the future, setup must also be completed for that jurisdiction to avoid processing interruptions.

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What Happens If No Action Is Taken?

 

For customers with completed tax setup:

If the update is not acknowledged by June 30, payroll tax setup may need to be resubmitted before QuickBooks can electronically pay and file taxes, which could temporarily impact payroll processing.

For customers with incomplete tax setup:

QuickBooks will not be able to automatically pay and file taxes until setup is completed, and payroll processing may be interrupted.

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Why QuickBooks Is Making This Change

 

QuickBooks states that this update is designed to streamline payroll tax management by reducing the need to manually track deadlines and complete filings. Increased automation allows businesses and accounting professionals to spend less time on administrative payroll tasks and more time focusing on daily operations and client service.

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Why You Must Acknowledge the Update

 

Acknowledging the update confirms that you understand how automated payroll tax payments and filings will work moving forward, including automatic withdrawals from your linked bank account.

After June 30, 2026, continued use of QuickBooks Online Payroll will constitute acceptance of the updated automated tax payment and filing process.

QuickBooks is also updating portions of its Payroll Terms of Service in connection with these changes.

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Need Assistance?

 

If you have questions about how this update may affect your payroll process or need assistance completing your payroll tax setup, please contact our office. We would be happy to help ensure your QuickBooks Payroll account is properly configured before the July 1, 2026 transition date.