Wow, this was a zinger when a bookkeeper talked to me today. She presented this issue which appears to be a programming bug in the QuickBooks Online Payroll.
First, let’s talk about QuickBooks Payroll Services. There are several different flavors of payroll.
1. The old Paycycle System, this is what you sign up for with the QuickBooks Payroll that is online, but not ‘attached’ to a QuickBooks File.
2. QuickBooks Payroll Assisted, Enhanced, Et. This verision is attached to a DESKTOP version of QuickBooks. If you are using any desktop version, this is usually what you have.
3. QuickBooks Payroll supported by a bookkeeper or an accountant.
4. QuickBooks Online which has a completely new system.
It might come as a surprise to most people, but these are four different infrastructures and code bases. What one can do, the other can’t. There are four different help desks that you could end up on. Which sounds great, but really is a can of worms if you end up being transferred to the incorrect help desk.
The first three types are robust and have been completely road tested.
The fourth, not so much.
Here is her dilimma: QuickBooks Online Payroll does not support payroll that is exempted from certain types of state taxes. You need to call support and have them toggle that behind the scenes. With help times exceeding two or three hours, that seems annoying. Plus, since many bookkeepers charge by the hour, is this the best interest of the client?
What? There are people exempt from payroll taxes? You will have to check with your state, but many S-Corp and C-Corp officers are exempt from state unemployment and various other types of payroll taxes. This is a fairly normal problem to over come.
Her solution? To migrate the company off of QuickBooks Online and it’s related payroll program.
I hope Intuit fixes this bug very soon.