Skip to main content

Get 50% OFF QuickBooks for 3 months*

Buy now
Switch to QuickBooks and 70% off for 3 Months
Talk to Sales: 877-683-3280
Hours
Mon - Fri, 5am - 6pm PST
Sat - Sun, 7am - 4pm PST
Product support & help
Need help signing in?
M
MK_APWC
New Member
December 15, 2025
Question

QuickBooks Online Elite - Payroll Correction challenges

  • December 15, 2025
  • 1 reply
  • 7 views

Does anyone in the Community know or have advice on how to effectively navigate the Payroll Corrections process with Intuit?


This is a summary and timeline of the challenge I'm experiencing:

1) In 2025/Q2 a state tax was withheld from an EE's pay that should not have been. This impacted two of the EE's paychecks.

2) The withheld tax has not been filed or reported to the state for which it was withheld (as we do not have a nexus or operations in that state--again, the withholding was unintentional).

3) I'm attempting to "correct" the withholding from the EE's past paychecks and issue a reimbursement to the EE for the amount withheld.

4) Between December 3rd and December 8th, I have had three phone calls with QuickBooks Priority Circle / Elite support to get help in processing the correction needed. Cumulative call time = 2 hours, 25 minutes.

5) After the December 8th call, I received confirmation that the correction was in progress: 15148927631 - PTO477618 - 12/8/2025

6) On December 9th, I received an email indicating that my case had been CANCELLED.

 

At this point, I'm wondering if it will be possible to get this correction completed before 2025 W-2's are issued by QuickBooks. I'm currently on hold (30 minutes in) on a fourth call with a QuickBooks expert, to understand what is going on with my case.

 

Does anyone have any experience with this scenario or working with QuickBooks support on Payroll Corrections in general? I'm at a loss of what to do next, aside from call back into support.

1 reply

M
MK_APWCAuthor
New Member
December 17, 2025

Update: I spent two hours on the phone with Support on December 15th, with no further resolution. I was told by the agent handling my call that the Payroll Corrections team would not accept my case, but with no clear explanation why or how to resolve from my end. The agent told me she would email me a follow-up, after she researched how I might address the issue myself. But that has not happened.

 

How do I escalate this further? I don't believe I'm getting the services I have paid for, with the QuickBooks Online Payroll Elite subscription.

cody_a
cody_aCommunity Manager
Community Manager
December 18, 2025

I can see how taxing it is to deal with incorrect state withholdings, @MK_APWC. It’s important to us that your employee's pay is accurate and that your business stays on track, so I’m stepping in to make sure this gets the specialized attention it needs.

 

I’ve shared your case with our Next Level Help team so they can find a path forward for you. They will review your Community posts and previous support history to make sure they have the full picture before they reach out. You can expect to hear from one of our experts within 1-2 business days with the next steps to resolve this.

M
MK_APWCAuthor
New Member
December 19, 2025

Hi @cody_a  - thanks for replying.

 

On December 17th, in my fifth call with QB Support, it finally became clear that my case does not qualify for a correction for the following reason, hence its rejection:

 

QuickBooks does not adjust state withholding personal income tax through payroll corrections because state withholding is considered a personal income tax. Payroll corrections typically adjust employer-reported wages and taxes, but personal income tax withholdings must be handled according to state tax agency rules.

 

This is covered in QuickBooks guidance stating they do not support e-filing for states with withholding-based filing requirements, and users must follow state-specific filing rules.

 

For detailed policy info, refer to the QuickBooks Online help articles on payroll state tax withholding and 1099 filing limitations related to withholding taxes.

 

For QuickBooks Support: the first three agents I spoke with, were not aware of the above. As such, they guided me to fill out correction forms and let me to believe the correction I was requesting would be possible. This resulted in confusion and time misspent.

 

For the Community: if a state income tax is unintentionally withheld for an employee, QuickBooks won't be able to correct this for you. In my specific instance, I believe my EE went into Workforce and changed the state tax exemption I had selected in their initial setup, which then led to the "personal income tax" being withheld. Ultimately, I must now register my business in another state and pay the tax withheld.

Need QuickBooks guidance?
Log in to access expert advice and community support instantly.
Terms & ConditionsAccessibility statement