PAYROLL COMPIANCE UPDATE
QuickBooks Payroll Tax Automation Updates Coming July 2026
Businesses using QuickBooks Online Payroll should be aware of an upcoming change that will affect previously optional elections for how their payroll taxes are paid and filed.
Beginning July 1, 2026, Intuit will require all eligible Quickbooks Online Payroll users to use its Automated Taxes and Forms service. Under this service, QuickBooks will automatically calculate, pay, and file payroll taxes on behalf of employers for properly configured tax agencies. There is no additional charge for this service, as it is inclusive in all QBO Payroll subscription tiers, but businesses were previously allowed to still manually file and pay payroll taxes if they chose to do so.
Deadline
June 30, 2026
QuickBooks Online Payroll users should review and acknowledge Intuit notifications before the July 1, 2026 change.
Additional information and FAQs are available from Intuit.
There is no additional charge for this service, as it is inclusive in all QBO Payroll subscription tiers, but businesses were previously allowed to still manually file and pay payroll taxes if they chose to do so.
What This Means for Employers
After July 1
Payroll tax payments and filings will be handled automatically by QuickBooks.
Manual tax payments and filings through the Payroll Tax Center will no longer be available.
Users will no longer be able to opt out of Automated Taxes and Forms.
Payroll service may be suspended/non-functional if enrollment is not completed.
Payroll tax amounts will be withdrawn automatically from the designated business bank account as liabilities become due.
Action Required
Already using automated tax setup
Businesses that are already utilizing automated payroll tax setup likely have no action needed, but should ensure their QuickBooks administrator reviews for and acknowledges any Intuit notification before the June 30, 2026 deadline, and monitor ongoing for any new notifications in the Payroll Overview center advising of issues.
Not yet fully set up
Quickbooks Online Payroll users who have not completed payroll tax setup should do so as soon as possible to avoid delays or interruptions in payroll and payroll tax processing.
Our Recommendation
Although the change is intended to simplify payroll tax compliance, business owners should review their QB Online payroll settings, confirm tax agency setup is complete, and monitor cash flow to ensure sufficient funds are available for automated tax withdrawals.
Need Help Reviewing Your QuickBooks Payroll Settings?
If you have questions about how these changes may affect your payroll process, or you need any assistance reviewing and confirming settings are appropriately in place before July 1, please contact our Outsourced Accounting team.
