Tax Deposits
Understand how tax deposits are generated and managed for payroll liabilities.
When a company approves a payroll, Tax Deposits are generated corresponding to the payroll's tax liabilities. This information is visible for all of a company’s payrolls from the Tax Deposits tab, or for a given payroll from its payroll journal page.
Upon creation, a Tax Deposit will not have a Due Date. For Tax Deposits that are due more frequently than quarterly due_date is typically populated within 1 business day. For Tax Deposits due after the quarter-close, or taxes that are due on only a quarterly or annual basis the Due Date will be populated two weeks after the end of the quarter, for example in the second week of July for a payroll run in Q2.
Each Tax Deposit has a Funding Status (whether the payroll associated with tax deposit has been successfully funded) and a Deposit Status (whether the tax deposit has been deposited to respective agencies).
The possible statuses for Funding Status are:
- Funded
- Funding for the payroll associated with the Tax Deposit was successful
- Pending
- Funding for the payroll associated with the Tax Deposit has not yet been completed
- Failed
- Funding for the payroll associated with the Tax Deposit has failed
The possible statuses for Deposit Status are:
- Deposited
- The Tax Deposit has been paid to the tax agencies in accordance with the due dates
- Pending
- The Tax Deposit has not yet been paid to the tax agencies
Note: Check will only send out payments for a Tax Deposit if it is Funded.
Visit API documentation for more information on the Tax Deposits API.
Last updated on March 31, 2024