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A Guide to Enter Previous Tax Payments in QuickBooks

QuickBooks has made the accounting and the tax-filing processes as convenient as it can get. It gives you all the features to streamline the accounts of your business. You might not be using QuickBooks from the first year of your company but once you start using QuickBooks, it becomes important to have all your records imported to QuickBooks for ease of reference and comparison. A similar task is to enter previous tax payment in QuickBooks. Through this article, we will walk you through the process to feed the records of your previous tax payments in the QuickBooks.

“If you want an expert’s assistance to enter previous tax payments in QuickBooks then contact QuickBooks Accounting Support at 1-(855)-542-9309”

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Why Reconcile your Previous Tax Records in QuickBooks

There are multiple reasons to why you should reconcile your previous tax records in QuickBooks. We have listed them out for you.

  1. If you enter previous tax payment in QuickBooks and reconcile them, then you can be saved from overpaying your tax liabilities.
  2. The previous tax payment records ensure the consistency of Year-to-date totals of the pay stubs.
  3. It provides you with the exact tax payment dates for previous tax periods.
  4. Feeding your tax payment history gives you the correct information about the W-2s at the end of the financial year.
  5. It facilitates QuickBooks in calculating the appropriate deduction accurately.

Key Points before you Enter Historical Payroll Tax Payments

There are certain important things that you should be prepared with before feeding your tax payment history, so we have laid out for you the key points to enter historical tax payments in QuickBooks.

  1. You should have an active QuickBooks Payroll subscription to enter this data as it can only be fed in the Payroll application.
  2. Stay prepared with the data of all your current and former employees who have been paid wages in the ongoing financial year.

How to Record Prior Tax Payments in QuickBooks

QuickBooks makes it pretty easy to go through the process of entering previous tax records. The guided steps to enter and record previous tax payments in QuickBooks Payroll are as follows:

  1. You have to go to the ‘Employee’ tab and then select the ‘Payroll Setup’ option.
  2. Enter all the details about the Company Setup, Employee Setup and Taxes on the Year-to-Date Payrolls page, click on the ‘Continue’ button.
  3. You’ll see ‘Tax Payments’ and an ‘Edit’ button besides it. Click on that.
  4. Enter the previous tax payment info here and click the arrow button suggesting moving forward.
  5. Now, you have to furnish the details of total tax amount that has been paid already, the remaining balance and the amount that QuickBooks calculated.
  6. After furnishing the details of the subsequent quarters, an amount appears under the ‘Balance Remaining’ column. This suggests your tax liability.
  7. At the end, you have to press the ‘Done’ button when you have fed all the info.

Steps to Record a Tax Payment you made Outside QuickBooks Online Payroll

If you intend to feed previous tax payment info outside Payroll Setup then we have provided the steps for that as well.

  1. Through the ‘Help’ menu, select ‘About QuickBooks’.
  2. Press Ctrl + Shift + Y on your keyboard simultaneously, it’ll open the Setup YTD Amount window.
  3. Follow through the prompt guide and you will reach the ‘Enter Prior Payments’ section.
  4. Go to Enter Prior Payment Section > Create Payment and then fill in all the payment details of Payroll whether it be taxable or non-taxable.
  5. Furnish the dates of the period ending and the payments made.
  6. Select the payroll items with no pending payment status.
  7. Through the ‘Accounts affected’ option, define the formats of payments one-by-one.
  8. Press the ‘Done’ button and then hit ‘Finish’.

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You should be able to enter previous tax payments in QuickBooks by following the above-mentioned steps. Through this article, we discussed in detail the benefits of entering your tax payment history in QuickBooks and also explained to you the steps to do that. If you want to enter previous tax payments in QuickBooks and need an expert’s assistance then contact QuickBooks Direct Support at 1-(855)-542-9309.

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