Intuit Payroll Updated Payroll Tax Withdrawals & Terms of Service

What’s changing?
Intuit is changing how they handle payroll taxes for customers with taxes automatically paid and filed by QuickBooks. Instead of withdrawing them when due, they’ll withdraw them every time payroll is processed, and when there’s a change in what you owe. Also, on the date you receive the change, they’ll make a one-time withdrawal for your federal unemployment, or FUTA, taxes. To address these changes, they’re also revising the Payroll Section of the QuickBooks Terms of Service (“Terms”). By continuing to use QuickBooks Payroll, you are agreeing to the updated Terms.

When will this apply to new clients?
Intuit will roll out this change to new QuickBooks Payroll subscribers starting August 2024 through the end of September. You will be able to view withdrawal amounts in the Payroll tax center as well as the preview when running payroll.

When will this apply to existing clients on QuickBooks Payroll?
On October 1, this change will take place for existing customers who employ their entire workforce in the following 11 states: AZ, CA, FL, GA, IL, KS, NC, NV, TN, TX, and VA. For the remaining states, Intuit will notify existing customers before the change takes place in the coming months. You will be able to view withdrawal amounts in the Payroll tax center as well as the preview when running payroll.

Continue using automated taxes:
Each employer who uses Auto Payroll must log in to confirm by September 30, 2024 that they want to continue using automated tax payments and filings. Intuit will email them confirmation instructions in a few days. If they don’t hear from you by September 30, they’ll turn off automated taxes starting October 1.

Clients who manually run payroll don’t need to take action to continue using automated taxes. If you’re not sure if this applies to you, you can check by going to the gear in the top right of your QBO screen, clicking on Payroll Settings, and checking to see if Auto Payroll shows any employees are enrolled.

Stop using automated taxes:
You can go to Payroll Settings, find Taxes and Forms and turn off Automate taxes and forms. If you turn off automated taxes, you’ll need to manually pay and file your payroll taxes by the deadlines.

What if I don’t currently use automated taxes?
You don’t need to take any action—Intuit will email you the updated Terms. If you want to start using automated taxes, there are a few steps you need to follow to get set up. Once you’ve turned on auto tax, Intuit will notify you before the change takes place.

My employees work in one of the 11 states listed and I want to continue using automated taxes. What happens starting October 1, 2024?

• That day Intuit will make a one-time withdrawal for any unpaid FUTA taxes to date. They’ll send you an email and notification reminders a week before.
• Any time there’s a change in the amount of taxes you owe, they’ll automatically withdraw the amount needed to cover it. This will happen when you run payroll, adjust a past payroll, or if a tax rate is updated.
• You authorize Intuit to hold onto the payroll tax funds until they are due to the relevant taxing authority, and you understand that no interest or earnings will accrue to you for any of the money held by Intuit.