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If you are not enrolled in electronic services, what does QuickBooks Online do with the employer payroll taxes?

User Lashon
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Final answer:

QuickBooks Online helps in tracking employer payroll taxes even without electronic services, but employers must manually handle filings and payments.

Step-by-step explanation:

When an employer is not enrolled in electronic services, QuickBooks Online still facilitates the tracking and computation of employer payroll taxes, but the actual payment and filing of these taxes may require manual intervention. In the United States, typically, an employer would withhold 6.2% for Social Security and 1.45% for Medicare from an employee's paycheck. Additionally, employers are also required to pay a matching amount for these taxes.

However, without enrollment in electronic services, employers might need to manually prepare and send the necessary forms and payments to the Internal Revenue Service (IRS) and any other relevant tax authorities. Electronic services often streamline this process by automatically generating reports and facilitating payments, but the absence of these services means more legwork for the employer. In the end, if electronic services are not utilized, it is the employer's responsibility to ensure compliance with all tax laws and regulations, including the accurate calculation, reporting, and remittance of payroll taxes.

User School
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