State Withholding Paid Manually with Credit Card

Withholding: What Is It?

The amount of an employee’s pay that is not included in their paycheck but is instead sent directly to the federal, state, or local tax authorities is known as withholding. Employee tax liabilities are reduced by withholding when they complete their annual tax returns. The amount withheld depends on a variety of variables, such as the employee’s income, marital status, number of dependents, and number of employees.

Note– You can create the Payroll Liability Check for your state’s withholding for your employees while preparing the payroll taxes. However, when you checked the state website, you found a way to manually pay it with a credit card instead of generating and sending a check. So you can take this action.

Comprehensive instructions for fixing your payroll liability payment

Before that, you must remove the tax payment QuickBooks generated by executing the following steps:

1. Select Payroll Center from the Employees menu.
2. Select Pay Liabilities from the Payroll tab.
3. Locate the payment by clicking All Payments under the Payment history section.
4. To open the transaction, double-click it, then select Delete. Select Yes to confirm after that.

Then, use a pass-through account to record payroll liabilities that were paid with a credit card. Observe these guidelines:

Step-1: First, open a new bank account

1. Select Chart of Accounts by going to Lists.
2. Select Account, then New, from the menu below.
3. Select Bank, then choose Continue.
4. In the account name area, type “Pass-Through Account.”
5. Select Save & Close after leaving the remaining fields empty.
6. If asked to set up a bank feed, click No.

Step 2: Create an individual responsibility payment

1. Select Create Custom Payments under Payroll Taxes & Liabilities under Employees.
2. Choose a date range, then click OK in the Select Date Range For Liabilities window.
3. The To Be Printed box must be unchecked.
4. The pass-through account you created in step 1 should be selected under Bank Account.
5. Select from the list of payroll bills that were paid with a credit card. then choose to Create.

Step-3: Charges made on a credit card

1. Next, select Enter Credit Card Charges under Banking.
2. Choose the payment date.
3. Choosing the Expenses tab.
4. Choose the pass-through account you created in step 1 under the Account heading.
5. Please enter the credit card payment amount.
6. You can include the payroll liabilities and, if applicable, a reference number under the Memo.
7. Save & Close option.

We can choose a Bank to record it in and Manually clear the transaction in order to reconcile it. 

Steps to Manually Clear it with A Credit Card

To manually Clear it with a Credit Card, follow these steps:

1. From the top menu bar, choose List.
2. Decide on the Chart of Accounts.
3. Choose the proper bank account.
4. Select the proper transaction.
5. To clear the transaction, click the column between the PAYMENT and DEPOSIT columns.
6. To confirm, click YES.
7. To confirm the changes, select Record and then Yes once more.

Steps to Set up credit card accounts

1. From the top menu bar, choose Banking.
2. Select Bank Feeds Center from Bank Feeds by going there.
3. Click Transaction List after selecting the proper credit card account.
4. Mark the boxes next to the transactions you want to delete in the box column on the Transaction List screen.
5. Select Ignore after clicking Batch operations.
6. To accept the changes, choose Yes.

FAQs