Starting July 1, 2026, QuickBooks Online will automatically pay and file all payroll taxes set up in the system. As part of this change:

  • Manual payroll tax payments and filings will no longer be available for set-up taxes.
  • The option to turn off automated payroll taxes will be removed.
  • Payroll tax funds will be withdrawn automatically when payroll is run or tax liabilities increase.

QuickBooks Online is making this change to simplify compliance and reduce the risk of missed payments. They are also updating their Payroll Terms of Service, continued use of QuickBooks Payroll means you accept those updated terms.

What You Need to Do

To keep payroll running smoothly, payroll tax setup must be completed by June 30, 2026.

Please log in to QuickBooks Online and:

  1. Go to Payroll Overview
  2. Complete any To Do items related to tax setup

What to Expect After Setup

Once setup is complete:

  • Payroll tax payments will be withdrawn automatically.
  • Any unpaid federal payroll taxes for the current quarter may be withdrawn right away.
  • If you’ve already paid taxes outside of QuickBooks, mark them as paid in the Payroll Tax Center so they’re recorded correctly.

If Setup Is Not Completed

If tax setup is not finished by June 30:

  • You may not be able to run payroll.
  • Payroll tax payments and filings will be delayed until setup is complete.

If you’re unsure whether your payroll tax setup is complete or would like help reviewing your QuickBooks Payroll settings, please contact a Kemper CPA Group QuickBooks ProAdvisor.