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How To File State and Federal Taxes in QB Payroll

What is State and Federal Taxes in QB Payroll & How to File it?

QuickBooks is the amazing software that helps you do more than one thing without having to have many in your business. Could we have ever thought of electronically filing your taxes and pay too? QuickBooks inbuilt features help you accomplish all these in few simple steps.

There are many questions that arise out of this process – Does it cost? What are the system requirements to do so? Are all forms and liabilities supported? Are the payments directed automatically once the payroll is run in QuickBooks? There are answers to all these questions.

What is the Cost Involved?

Well, you will be happy to know that e filing is absolutely free if you are a subscriber to QuickBooks Enhanced Payroll. You wouldn’t have to pay a penny.

1. System Requirements

It is an integral part of installing any feature or software in a system. In order to e file and e pay, you will need to have –

  • Versions of QuickBooks that are supported
  • Enhanced Payroll Service which is active at the same time
  • The form is supported for upload in QB
  • The Payroll liability is QB supported
  • Credentials to log in by the agency that will receive the form and liability

2. Supported Forms and Liabilities

Not all forms are supported; therefore you need to check if they are-

  • Federal 940 and 941/944 payments
  • Federal Forms 940, 941 and 944
  • Federal Forms W-2 and W-3
  • Forms from Selected States only

After you fulfill at the above stated conditions, you are ready to e file and e pay. To begin with, you need to first create an IRS e services account after which you need to fill the form, submit your application and finally pass a suitability check which doesn’t come easy.

How to Create an IRS e Services Account?

This is the first step towards e filing your taxes. In order to create your IRS account for e services, you will need certain factors to keep in mind.

You will need to have the below mentioned details with no failure-

  • Basic information like the Legal name, social security number, date of birth, phone number, email address and the home mailing address
  • Adjusted Gross income as per the current or previous tax year
  • Now that you have all the information handy, you will need to create username coupled with a password and a unique PIN. While creating this, you will be asked a question for future in case you forget your password
  • You need to ensure that every employee of your company has enrolled for e services
  • You then log out
  • You will need to return to the same page of e services once you have got the confirmation in the mail within 28 days

The task is not as easy as it seems. It takes longer than anticipated as there are verification and approvals involved. It is advisable to plan your e filing accordingly.

Once you have got the confirmation, you begin the process of filling the form for yourself and everyone in it deemed responsible officials.

Follow the steps to successfully complete it-

  • Login to e services to become an authorized IRS e services file provider
  • Now select the option of e file provider
  • You then need to enter the firm’s identification and services that you provide to tax payers
  • Like the first step, enter name, social security number, date of birth, email address, home address for each employee and responsible officials
  • Then enter the professional designation
  • Call on the toll free number 866-255-0654 in order to request for a fingerprint card for those responsible officials who are not attorney, certified public accountant, enrolled agent, officer of a public organization or a bonded bank
  • Now get the fingerprints under the supervision of a trained professional at the nearest police station or any agency that are certified in this
  • Now you need to mail the signed and completed card to IRS

For the IRS to acknowledge with approval might take up to 45 days; hence it is recommended that everything is planned accordingly so that you are not out of time.

1. Sustainability Check

After everything has been completed in due time, arrives the time for sustainability check. This can be check of your credit history, compliance check pertaining to tax, criminal background check or any prior non-compliance check with IRS e filing department.

After these checks have been conducted and you and your firm come out clean in these checks, you will be provided with an acceptance letter that contains EFIN which refers to electronic Filing Identification Number.

2. Now What?

After the tedious and long process of being considered an e file provider is complete, you will have to submit the forms 941, Form 944 or 940.

That can be done by-

  • Choosing Employees>Payroll Centre in QuickBooks
  • Choose the files you want to upload
  • Click on Create Form
  • Click on the Submit Form
  • If there is any error with the files, you will get a pop up. You need to fix the errors and click on Submit Form again
  • Now click on the E file Federal Form
  • Now you need to enter the information asked for including the most important EFIN and PIN
  • Before completing everything, you need to be sure that the Remember my information for next time checkbox is checked. This will be useful to save time in future
  • Now finally click on the Submit button

All job done and your files will be sent to the IRS team directly.

E filing Taxes Using Intuit Enhanced Payroll enables you send your files directly through the electronic means with no delay and hassle. It is the best way to remain complaint too as QuickBooks guides you in every step of e filing to ensure no mistake is committed. Life gets easy with this process for sure.

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