How to Deposit Taxes with Quicken 2013

By Stephen L. Nelson

Making tax payments with Quicken 2013 is easy. Make no mistake. Uncle Sam wants the money you withhold from an employee’s payroll check for federal income taxes, Social Security, and Medicare. Uncle Sam also wants the payroll taxes you owe — such as matching Social Security and Medicare taxes and federal unemployment taxes.

Every so often, then, you need to pay Uncle Sam the amounts you owe.

Deposit the employee withholding

To remit the payroll taxes you withhold from an employee’s check, follow these steps:

  1. Sign up for the U.S. Treasury’s electronic funds tax payment system, also known as EFTPS.

    You should visit the EFTPS website a few weeks (at least a couple of weeks and preferably more) before you want to process payroll. Find the link that lets you sign up for the service. And then carefully follow the onscreen instructions to create your EFTPS account. Note that you only need to take this step once.

  2. Log into the EFTPS website.

    This is easy. Click the link that indicates you want to log on to the website. Then provide three bits of information: your employer identification number, the PIN (personal identification number) and your password. Both the PIN and your password come in the letter that welcomes you to the EFTPS system.

  3. Indicate you want to make a payment equal to the payroll taxes that you withheld from the employee’s check.

    For example, Betty has withholding that includes $18 of income taxes, $24.80 of Social Security taxes, and $5.80 of Medicare taxes. You would initiate an EFTPS payment for $48.60. Again, within Quicken you need to categorize the check in the Wages expense category.

    Betty’s true earnings were $400: the $351.40 net payroll check plus the $48.60 of payroll-related and income taxes that she owed but that you, the employer, withheld.

Pay employer payroll taxes

You have to match any Social Security and Medicare taxes paid by the employee. To record the payment of these payroll taxes, you follow a similar set of steps. Indicate you want to make another EFTPS payment equal to the payroll taxes you owe as the employer.

(In the example case of Betty, where the withholding included $24.80 of Social Security taxes and $5.80 of Medicare taxes, you would make a payment for $30.60 payable to the local bank.)

When you pay the employer’s payroll taxes — such as the matching Social Security and Medicare taxes — you want to categorize the check as a payroll tax category. This money absolutely does represent a payroll tax expense to the employer.