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katelynner
Community Manager
March 27, 2026
Question

Updates to QuickBooks Workforce Taxes

  • March 27, 2026
  • 19 replies
  • 3911 views

 

What’s Changing: 

Starting July 1, 2026, for all customers, QuickBooks Workforce 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 Workforce Tax Center will no longer be an option, and the ability to turn off Automated Taxes will no longer be available.

This change is designed to simplify payroll tax management by allowing QuickBooks to handle payments and filings on your behalf—helping reduce manual effort, support compliance, and provide greater confidence that taxes are handled accurately and on time.

 

Who is affected and When?

  • Customers who have signed up for QuickBooks Workforce l before November 15, 2025 will experience this change from July 1, 2026. These customers received an email in early April 2026 and a notification was posted in QuickBooks Workforce. Watch a short video to learn more.
  • For customers who signed up for QuickBooks Workforce on or after November 15, 2025, this experience is already in place. Read a community post to learn more.


What you need to do:

  • For customers that have completed tax setup:
    By June 30, 2026, a Primary or Company Admin will need to sign in to QuickBooks Workforce and acknowledge this update.
  • For customers who have not completed tax setup:
    Starting July 1, 2026, tax setup will be required. To help avoid any disruption to payroll, go to Payroll Overview and complete the To Do items to finish tax setup.


What to expect starting July 1, 2026

If tax setup is complete:

  • A one-time withdrawal will be made for any unpaid FUTA taxes to date. Be sure there are sufficient funds available in the account. You can preview the current FUTA amount in the Payroll Tax Center. 
  • Any unpaid taxes for periods ending before July 1 will still need to be paid and filed manually, even if the due date is in July. 
  • Going forward, QuickBooks will automatically withdraw payroll taxes from the bank account on file when payroll is processed, past payroll is adjusted, tax rates change, or taxes owed increase.
  • Automated payments and filings will apply to jurisdictions where tax setup is complete. You can check the status of each tax in the Payroll Tax Center.

 

If you add a new jurisdiction in the future, tax setup will need to be completed for that jurisdiction. If it is not completed, payroll processing may be impacted.

 

What happens if no action is taken:

  • For customers who have completed tax setup: If the update is not acknowledged by June 30, you will need to resubmit your tax setup before QuickBooks can pay and file taxes electronically, and payroll processing may be impacted in the meantime.
  • For customers who have not completed tax setup: QuickBooks will not be able to pay and file taxes automatically until setup is complete. Late completion may disrupt your payroll.


Why we’re making this change:

This update helps streamline payroll tax management by reducing the need to track deadlines and complete filings manually. With more automation built into payroll, accountants and businesses can spend less time on administrative tasks and more time focusing on their clients and business priorities, while maintaining confidence in accurate and timely tax handling.

 

Why do I need to acknowledge this change before I can use payroll?

When you acknowledge, you are confirming you've seen this information notifying you of the upcoming change. Because automated taxes involve automatically withdrawing funds from your bank account, we want to make sure you're aware of how it works before July 1, 2026. Once you acknowledge, you can continue using payroll. After June 30, 2026, if you continue using QuickBooks Workforce, you agree to continue using the service with the automated tax payments and filings update.

To support these changes, we are also revising the Payroll Section of the QuickBooks Terms of Service. (“Terms”). View Terms

 

Getting ready for July 1, 2026

 

What happens if I don't acknowledge it by June 30?

If we don't hear back, you'll need to resubmit your tax setup for QuickBooks to resume paying and filing your taxes after July 1, 2026. Until your tax setup is complete, you'll need to handle payments and filings directly with the tax agencies for all taxes (including Q2).

 

How is unpaid Federal Unemployment Tax (FUTA) for 2026 handled on July 1?

On July 1, we'll make a one-time withdrawal for any unpaid FUTA taxes to date. Make sure there to transfer sufficient funds in the bank account on file before July 1. You can preview the latest unpaid FUTA amount anytime in the Payroll Tax Center.

 

Will QuickBooks automatically pay and file my second quarter (Q2) taxes?

No. Q2 covers April through June 30, which ends before the change takes effect. Any unpaid Q2 taxes still need to be paid and filed manually. Starting with the Q3 period (July 1 onward), QuickBooks will pay and file your taxes automatically.

 

When taxes get withdrawn

 

When are taxes withdrawn?

We'll automatically withdraw payroll taxes from the bank account on file when payroll is processed, a past payroll is adjusted, a tax rate is updated, or when there's an increase in taxes owed.

 

I run payroll ahead of the pay date. When will taxes get withdrawn?

For a specific payroll run, the taxes are typically withdrawn on the day your employees get paid (paycheck date). Even if you run payroll ahead of time — e.g., a payroll submitted on Monday with a Friday pay date — the taxes will only be withdrawn from your bank on Friday. Note: if you’re on 5-day funding model, taxes will be withdrawn earlier than pay date; refer to the date on the Preview step of “Run Payroll.”

 

Where can I see the amount of taxes QuickBooks will automatically withdraw?

If you run Auto Payroll, the withdrawal amount appears in your Auto Payroll preview email. If you run payroll manually, the Preview step shows the tax amount before you submit. You’d also get a withdrawal receipt the day before a debit hits your bank account, and a tax withdrawal record will appear in the Tax Transactions report.

 

Forms, errors and unsupported taxes

 

Can I preview tax forms before they're filed?

Yes. Quarterly tax forms are filed around mid-month after the quarter ends, and you can review the amounts in the Payroll Tax Center before the filing date.

 

What if QuickBooks makes an error on a tax payment or filing?

You're covered by our Payroll Tax Accuracy Guarantee. If you give us accurate and timely info and a QuickBooks error causes an IRS or state payroll tax penalty or interest, Intuit will cover it.

 

Some of my local or state taxes aren’t supported by QuickBooks. Is that changing?

No. A small number of taxes — like WY Workers' Compensation and PA Local Services Tax — aren't currently supported by QuickBooks for electronic payment and filing. You or your accountant will have to continue to pay and file those directly with the tax agency.

 

Funds, plans and accountant access

 

What happens if there aren't enough funds in my account when QuickBooks tries to withdraw taxes?

We'll let you know by email and in the Payroll Tax Center, and we'll automatically try the withdrawal one more time. If that fails too, contact support to arrange an alternative payment. Until the balance is resolved, tax payments will be on hold — which, depending on the deadline, could result in a notice or penalty from the tax agency. To avoid this, review expected tax amounts in the Preview step or your Auto Payroll preview email, and keep enough in the account to cover both direct deposit and tax withdrawals.

 

I am on the QuickBooks Workforce Payroll (Core) plan, and pay local taxes manually. Do I need to upgrade?

No upgrade is required. The change only applies to taxes QuickBooks supports for payment and filing within your current plan. Local taxes that QuickBooks doesn't support — like PA Local Services Tax — continue to be handled the same way you do today, outside QuickBooks. Automated local tax payments and filings remain a Premium and Elite feature.

 

Will my accountant still have access to my payroll taxes?

Yes. Accountants with primary or company admin access continue to have full visibility into all the payroll tax payments and filings through the Payroll Tax Center. They can track the amounts of payments and preview forms in the Payroll Tax Center.


We appreciate your feedback! Please share your comments here.

 

This topic has been closed for replies.

19 replies

SirMatthew
March 27, 2026

What about those of us who LIKE doing payroll taxes for clients, and those clients WANT us to do their payroll tax returns? Is there NO way to opt out of this?

"If you don't have anything nice to say about anybody, come sit by me!"
April 1, 2026

This is the final nail in the coffin for me and QuickBooks/Intuit. The thought of a piece of software taking over my payroll filing and CONNECTION TO MY BANK ACCOUNT to make payments on my behalf without authorization from me, is absurd.

And then they try to pawn it off on "making it easier for me to do other things" is laughable. Anytime a company removes the ability for customers to make their own choices is never a good thing, particularly when it has access carte blanche to my bank account.

I will be moving to another solution and I encourage everyone else impacted by this ridiculous requirement to do the same.

April 1, 2026

I agree with you. Intuit is FORCING its customers into this. I began a new job, and they had to switch to QBO, and I could not process payroll until I entered the information to allow them to auto-pay/file. It will be a disaster since I need a corrected 941. The migration with payroll did not go smoothly, and there is an error. There is no way to stop the filing. 😞 To make things worse, the support department never has answers or can help. 

SirMatthew
April 2, 2026

Good luck waiting for refunds from amended 941's! It's been eight months for one that I e-filed!

"If you don't have anything nice to say about anybody, come sit by me!"
April 1, 2026

This is the final nail in the coffin for me and QuickBooks/Intuit. The thought that a piece of software taking over my payroll filing and CONNECTION TO MY BANK ACCOUNT to make payments on my behalf without authorization from me, or even the option to authorize, is absurd.

And then they try to pawn it off as "making it easier for me to do other things" instead of manage payroll filings is laughable. Anytime a company removes the ability for customers to make their own choices is never a good thing, particularly when it has access carte blanche to my bank account.

I will be moving to another solution and I encourage everyone else impacted by this ridiculous requirement to do the same.

April 1, 2026

I'm about to process the quarterly payroll tax and is now forced to "acknowledge" in the web browser that Quickbooks will be automatically paying payroll tax in three months with no opt-out option. This is frankly out-of-touch with how your product is currently used with the clients and, at best, extremely naive on the time needed for your customers to agree and test out how payroll tax is handled with the client. My clients have businesses in multiple states and your Quickbooks product cannot even handle more than one state to be processed automatically. I'm in a position that handles Quickbooks for multiple clients and they each prefer to have their own process of checks and balances. Forcing them to an automated process without consultation or time to test is going to stray away many clients from keeping Quickbooks. I know that many of my clients will be interested in alternatives.

dirtzero
April 1, 2026

We are immediately exploring other payroll provider options because of this change.  I've already submitted feedback, but would like to document our strong opposition to being forced into using automated payroll.  Based on over a decade of experience using your payroll product, I have zero trust in our taxes being handled correctly, not to mention the fact that you'll be withholding funds from us weekly, when several of our taxes are due monthly, quarterly and even annually, in some cases.  We process payroll in multiple states.  I currently have three outstanding issues with our payroll taxes, for which I've wasted hours on the phone without resolutions.  I have to spend extra time each month on work arounds due to the lack of help on your end.  I am already shopping around for third party payroll apps that will integrate with our QuickBooks accounting.  This decision is a mistake and I hope that enough of your clients speak out against it that you change your plans.

April 1, 2026

I hope everyone that looks for alternatives will share their findings here.  Intuit forcing this is not acceptable.  I also have multi-state payroll which makes it more difficult to find options.  

April 1, 2026

Am I to understand that for example, a payroll processed on the 1st of the month for a business that is a monthly (tax) depositor, will have the 941 income tax and state income tax totals taken from the businesses bank account and held by Intuit for what will be up to 45 days before it is paid to either the state or the IRS?

I am not sure how legally you can take money from a business that isn't due to be paid for over a month and deny them the ability to earn interest on their own money for that period of time.  If there is some legal loophole you are slippipng through it certainly isn't ethical.  

dirtzero
April 2, 2026

This is my understanding!  Can you imagine the interest income they'll make across all accounts, by making this change?

April 2, 2026

This is terrible.  I control my own money, pay my taxes when they are due, and handle my own payroll.  I don't need to be treated like a child.  I am switching to Xero.  Good bye, QBO.

April 2, 2026

This is the final nail in the coffin for our business as well...no option to opt-out? You all must be really confident in your services. The reason we handle our taxes manually is because of all the errors and mistakes that QB made when I let them handle something. And what happens when I have an problem? Any issue requiring any kind of brain power to solve takes at least an hour on the phone. I just had an issue where my state didn't receive the proper forms on time, they were supposed to be filed at the same time as the federal forms. They weren't and the solution was "well we are showing they were filed so they should have them." I called the state to confirm they did not receive them, only solution QB could come up with was to have me upload the notice so they could investigate how that happened but they couldn't file them for me again because "they were already filed." I had to file them myself, late, and am now waiting for a penalty notice to arrive in the mail. Thanks QB, should I send you the bill?

 

Honestly, this update is a blessing - I've been putting off switching payroll services because it's a hassle but this is the final push we needed to make a decision. I'm hoping to switch out of QB completely. 

April 2, 2026

What about 1099s? Will those forms be automatically filed?

April 2, 2026

Your notice is unclear on key points: when will QuickBooks actually withdraw payroll taxes from the bank account?

Right now, QuickBooks calculates payroll taxes when payroll is run, but I manually go in later and pay each tax before its due date.

After this change, for taxes such as federal withholding, FICA, FUTA, and state payroll taxes:

  • Will QuickBooks withdraw the money immediately when payroll is processed?
  • Or will it withdraw the money only on the normal tax due date for each agency?

Related questions:

  • Does QuickBooks debit the funds as soon as payroll is run and then hold/remit them later?
  • Or does it wait and debit closer to the agency due date?
  • Will each tax be withdrawn on its own schedule, or pulled together at payroll time?
  • Where in QuickBooks can I see the exact withdrawal timing before I submit payroll?

That timing difference matters a lot for cash flow, and the notice does not clearly explain it.