Payroll taxes

A business does not pay each tax separately. Taxes are gathered into the deposits and returns the agencies ask for. BizBooks360 groups them the same way, which is why the pay run listed 941 deposit, Oregon withholding, Oregon unemployment, FUTA, Oregon statewide transit tax and Paid Leave Oregon rather than a dozen lines.

The six amounts add to 455.05 + 157.92 + 47.38 + 11.84 + 1.97 + 11.84 = 686.00, exactly the credit to Payroll Taxes Payable on the paycheck's journal entry (Chapter 11.2). That is the figure this chapter follows.

Payroll → Taxes → Rates we use lists every tax the business pays, with its rate, what it applies to, and where the figure comes from. Most lines are Standard: tables BizBooks360 loads from the agency's publication, which nobody in the books can change. A few are Your rate: figures only your company has, such as the unemployment rate on the state's notice.

1. 1

   Confirm your figures

   Press Confirm your figures. The dialog lists only the five figures Summit Gear Repair decides: its four tax accounts and its unemployment rate. Read each against the agency's letter and press Confirm 5 figures. The page answers Confirmed 5 lines for 2026. and each group now says who checked it and when.

1. 2

   Check a paycheck

   Check a paycheck works any approved paycheck out again with today's rates and puts the two side by side. Choose A paycheck already made and pick check 1001. Nothing is changed: an approved paycheck is never recalculated. A difference tells you a rate changed after the paycheck was made.

Some businesses handle a tax outside BizBooks360, for example while moving from another payroll provider. Payroll → Settings → Taxes processed lists every tax with a tick. Every tax is worked out until it is turned off here, and turning one off asks first.

To see what it asks, we unticked Oregon statewide transit tax and pressed Save changes once. Nothing was saved. The page explained the consequence and added an I understand box that must be ticked before a second save.

We pressed Cancel: Summit Gear Repair keeps every tax on. Had the change been saved, a turned-off tax would print as 0.00 on later paychecks and appear on the Skipped taxes report (Chapter 11.4). Paychecks already approved never change.

A deposit names the agency it was paid to. Payroll → Taxes → Where to pay keeps the list.

1. 1

   Add the IRS

   Add an agency. Name: Internal Revenue Service (EFTPS). Paid on: EFTPS, the IRS's payment system. Tick 941 deposits and FUTA. Under Text on the bank statement type how the bank prints the payment, here IRS USATAXPYMT; Find in bank looks for it later. Press Add the agency.

2. 2

   Add the state

   Oregon collects withholding, unemployment and its other payroll taxes together through the Department of Revenue. Add it with state withholding, state unemployment and state disability ticked, paid on Revenue Online.

Payroll → Taxes → Owed and paid shows, as the books show it, what has been withheld and owed, what was deposited, and what is left, by deposit period. A paycheck counts from its check date. Opened on November 2, the page said No taxes accrued yet, because check 1001 is dated November 6. With the As of date set to 11/06/2026 it shows the whole picture.²

Reading the FUTA line. The federal unemployment tax is 6.0% of the first 7,000.00 of each employee's wages, less a credit of up to 5.4% for paying state unemployment on time. The page shows the credit: 5.4% of 1,974.00 = 106.60. What remains is 0.6% of 1,974.00 = 11.84, the figure on the paycheck. Because it is under 500.00 for the year, nothing is due until Form 940.

Reading the two Oregon lines at the bottom. The statewide transit tax and Paid Leave Oregon are deposited on their own. The transit tax group carries a grey note because BizBooks360 has no Oregon deposit schedule on file for it: No Oregon deposit schedule on file -- set it in Payroll settings. The due dates below assume quarterly deposits. Its due date, 02/01/2027, is then an assumption, not a fact from the agency; the note itself says where to settle it. Paid Leave Oregon shows no such note.

1. 1

   Record the deposit once it is made

   When the 941 deposit has been paid through EFTPS, press Record on its line (or Record a deposit at the top) and fill in the deposit. Deposited then shows what was paid against the period, and Remaining what is left. Find in bank looks for a statement line with the agency's text. In these practice books the deposit could not be recorded yet, as the next paragraph shows, so its form is not pictured.

Too early. We pressed Record on November 2. The dialog refused: the paycheck does not count until its check date, so on that day there was nothing to deposit for.

When a return has been sent, mark it on Payroll → Taxes → Filed returns with Mark a return as filed. A mark never stops a later change; it makes sure the change is noticed, so you know to file a correction. Summit Gear Repair has nothing to mark yet: the fourth quarter has not ended. The page speaks of the returns reported to the IRS and Oregon, the books' own state.

BizBooks360 prepares worksheets for the returns, not the forms themselves; Chapter 11.4 shows the Form 941 and W-2 worksheets. Filing and paying happen at the agencies.

• [x] Start of the year: the new unemployment rate entered and the year's figures confirmed.
• [x] After each pay run: Owed and paid shows the new amounts and their due dates.
• [x] Each deposit made at the agency and recorded on its line.
• [x] Each statement: Find in bank matches the deposits.
• [x] Each quarter: the return filed from the worksheet and marked as filed.
• [x] Taxes processed: every tax ticked, unless another system handles it.