What’s Changing?
Starting July 1, 2026, for all customers, QuickBooks Online Payroll will automatically pay and file all taxes that have been set up. As part of this update, manually submitting tax payments or filings for those taxes in the Payroll Tax Center will no longer be an option, and the ability to turn off Automated Taxes will no longer be available.
Who’s affected?
- Customers who signed up before November 15, 2025 will see this change starting July 1, 2026.
- Customers who signed up on or after November 15, 2025 already use this system.
What do you need to do?
- If tax setup is complete: A Primary or Company Admin must log in and acknowledge the update by June 30, 2026.
- If tax setup is not complete: Tax setup will be required starting July 1. To avoid payroll delays, complete the required setup tasks in Payroll Overview as soon as possible.
What can you expect?
- Any unpaid FUTA tax to date will be withdrawn one time after July 1.
- Going forward, payroll taxes will be automatically withdrawn and filed when payroll is processed or adjusted.
- Automated payments apply only where tax setup is complete. New jurisdictions will require setup before payroll can continue smoothly.
Why does this matter?
- If no action is taken, payroll processing could be disrupted until tax setup is completed or re-submitted.
Why is QBO making this change?
This change is designed to simplify payroll tax management by allowing QuickBooks to handle payments and filings on your behalf. This will help to reduce manual effort, support compliance, and provide greater confidence that taxes are handled accurately and on time.
Do you have more questions?
Contact your trusted CPAs and advisors!