Important Update to QBO Payroll – Action Needed by June 30, 2026

We want to make you aware of an important change coming to QuickBooks Online (QBO) Payroll service, effective July 1, 2026. If you utilize QBO Payroll, please read carefully, as these changes will affect how your payroll taxes are paid and filed.

What’s Changing?

• Automatic Payroll Tax Payments & Filings: Beginning July 1, 2026, QBO Payroll will require all payroll tax payments and filings to be automatic. Manual submission of payroll tax payments and filings will no longer be available, and the ability to turn off automated taxes will be removed from your payroll settings.
• Please reference the Payroll Section of the QuickBooks Terms of Service for updates.

Why Is QBO Making This Change?

QBO is updating its payroll tax processing to align with industry standards by automating tax payments and filings.

What This Means for You

If you are not currently using the automated taxes & filings setting in QBO Payroll, the system will now default to automated beginning July 1, 2026. You are required to complete several action steps (outlined below) by June 30, 2026, to ensure uninterrupted payroll processing.

Quarterly tax filings will now be automatically managed by QBO for most taxes with the following exceptions:

1. Core subscriptions: PA local & LST filings must still be handled manually.
2. Premium and Elite subscriptions: PA LST filings must still be handled manually.

What You Need to Do

Action is required to ensure no disruption to your payroll processing.

• Log in to QBO Payroll > Go to Payroll Overview.
• Complete ALL To-Do items for finishing tax setup.
  (This is essential to avoid disruption in your payroll processing.)
• If you’ve made payments outside QBO:
  Use the Payroll Tax Center to “Mark as Paid” for those transactions.
• Have a Primary or Company Admin sign in to QBO and acknowledge the update.

If You Complete Tax Setup by June 30, 2026:

• QBO will automatically withdraw payroll tax funds from your bank account when payroll is run and as tax liabilities increase.
• Any unpaid federal taxes for the current quarter will be withdrawn immediately after completing tax setup.
• Automated filings will apply to jurisdictions with complete setup.

If Tax Setup is NOT Completed by June 30, 2026:

• You may be unable to run payroll until tax setup is finalized.
• Payroll tax payments and filings will not occur, potentially putting your business at risk for missed deadlines or penalties.

We’re Here to Help – Exceptional Support Options

Our goal is to make this transition smooth and stress-free. Here’s how we can assist:

• One-on-One Guidance: We’re happy to walk you through the new setup process or answer questions about this change.
• Payroll Provider Consultation: Considering a different payroll solution? We’ll help you vet options and find the best fit for your needs.
• Hands-On Setup: If you prefer, we can complete your payroll tax setup on your behalf for seamless automation.
• Ongoing Support: Reach out anytime for troubleshooting, clarification, or best practice advice as you adapt to this change.

Contact Us

Please call us at 717-239-5180 for any questions or concerns. We recommend addressing these changes as soon as possible to ensure uninterrupted payroll services.