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Huge QBO Payroll Change! Starting this fall, Intuit will draft the Federal Unemployment Tax Payments (FUTA) when payroll is run, instead of when they're due. This will help business owners not get caught short. I'm glad because it's one less thing I have to track. Keep an eye on your email! "Updated payroll tax withdrawals & Terms of Service What’s changing? We're changing how we handle payroll taxes for customers with taxes automatically paid and filed by QuickBooks. Instead of withdrawing them when due, we'll withdraw them every time payroll is processed, and when there’s a change in what your client owes. Also, on the date your client receives the change, we’ll make a one-time withdrawal for their federal unemployment, or FUTA, taxes. To address these changes, we’re also revising the Payroll Section of the QuickBooks Terms of Service (“Terms”). When will this apply to new clients? We’ll roll out this change to new QuickBooks Payroll subscribers starting August 2024 through the end of September. Y 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, we'll notify existing customers before the change takes place in the coming months. You and your client will be able to view withdrawal amounts in the Payroll tax center as well as the preview when running payroll. Note: If you are listed as an admin for multiple clients, you may receive multiple notifications. We apologize for any inconvenience this may cause. What are my client’s options? Continue using automated taxes: Each client who use Auto Payroll must log in to confirm by September 30, 2024 they want to continue using automated tax payments and filings. We’ll email them confirmation instructions in a few days. If we don’t hear from them by September 30, we’ll turn off automated taxes starting October 1. My client’s employees work in one of the 11 states listed and the client wants to continue using automated taxes. What happens starting October 1, 2024? • That day we’ll make a one-time withdrawal for any unpaid FUTA taxes to date. We’ll send your client email and notification reminders a week before. • Any time there’s a change in the amount of taxes your client owes, we’ll automatically withdraw the amount needed to cover it. This will happen when they run payroll, adjust a past payroll, or if a tax rate is updated. • Your client authorizes Intuit to hold onto the payroll tax funds until they are due to the relevant taxing authority, and they understand that no interest or earnings will accrue to them for any of the money held by Intuit. How might this help my clients? • Less effort to figure out what taxes they owe and when they’re withdrawn. • Helps them avoid missing payroll tax payments from not having enough funds set aside.
As a small business owner I agree with Julie Mullis. Now Intuit is going to make interest on my money, in addition to my subscription fees. They are doing this on their new Bill Payment service too, when they hold my money for a week before transferring it to a vendor's account. They are increasing the cost of their services to me without lowering any subscription fees. Corporate greed?