Purpose
Once you approve a payroll, UZIO deposits and files your payroll taxes with each taxing authority. This article explains how that works: what a tax impound is, how you can tell whether your company impounds, when deposits happen, where to review payments and filings, and what appears on your bank statement.
Who needs this: Any user whose role includes the Payroll permission. This is usually the Employer Admin, but other admin roles can be granted the same access.
How it works
When a payroll is approved, its tax liabilities are impounded: debited from your company bank account in a separate transaction alongside the payroll debit, typically on the same day as the direct deposit debit. UZIO holds those funds and remits them to each taxing authority on your deposit schedule.
The impound total is listed on the Payroll Cost Report generated at approval. That report separates the taxes UZIO handles from any it does not: section B, Taxes filed and paid by UZIO, and section I, Taxes not filed and paid by UZIO. If section I is not empty, those taxes are your responsibility to deposit and file; ask UZIO Support which taxes they are and why if you are unsure.
Impound or direct debit: which applies to you
Whether UZIO impounds is a company-level setting that UZIO configures when your bank account is set up. The question on the bank account form, "Does UZIO plan to impound taxes and garnishment for this company?", is visible to UZIO staff only. The two behaviours:
- Impound (Yes). UZIO debits taxes and garnishments from your bank account after every payroll run, then pays the agencies when due.
- Direct (No). UZIO initiates the transfer from your bank account directly to the agencies when payments are due. Funds stay with you longer, but debits arrive on agency schedules rather than payroll days.
How to tell which you are on: the payroll summary you approve shows one combined debit for direct deposits and taxes if you impound. If you do not impound, the summary says instead: "For taxes and garnishment (if applicable) payments, Uzio will initiate funds transfer directly from your bank account(s) to appropriate agencies when those payments are due. Please ensure that you have sufficient funds." Non-impound companies also see a footnote to the same effect in each Regular payroll's confirmation email.
Note: Companies based in Colorado or Texas may be set up without impounding, with taxes debited and deposited per agency schedule instead. If you are in either state and are not sure how your taxes are debited, ask UZIO Support before your first payroll.
When taxes are deposited
Deposits follow your company's deposit schedule with each agency. Your federal deposit schedule (Monthly or Semi-Weekly) is recorded in Adding Federal Tax Information; state schedules are recorded per state in Adding State Tax Information. Typical timing:
| Schedule | Typical due date | When the debit typically occurs |
|---|---|---|
| Quarterly | Last day of the month following quarter close (Q2 ends June 30, due July 31) | Within the two weeks before the due date |
| Monthly | The 15th of the following month (April taxes due May 15) | Up to 3 business days before the due date |
| Semi-Weekly | Within 3 to 5 business days of the check date, depending on its weekday (a Monday check date is due Friday) | Up to 3 business days before the due date |
If you impound, these dates affect only when UZIO pays the agency, not when your account is debited. If you do not impound, they are when the debits hit your account, so keep the funds available.
Where to review payments and filings
- At approval: save the Payroll Cost Report (all costs: direct deposit totals, tax liabilities, garnishments, expected impounds) and the Payroll Register (per-employee breakdown with company totals).
- Any time: in Reports > Payroll Reports, run the Payroll Register Report or Payroll Allocation Report for employer and employee taxes over a date range.
- Each quarter: the Tax Filing Reports tab of Tax Documents and Settings lists the returns UZIO filed, generally by the end of the month after the quarter closes. See Year-End W-2s and Tax Documents.
- Independently: log in to your online tax agency portals to see the payments and filings made on your behalf.
What you see on your bank statement
Tax debits do not show the taxing authority's name. You see a tax-impound description (for example, one referencing "Tax Impound") tied to your approved payroll, and the exact wording varies by bank.
Tip: Save the Payroll Cost Report and Payroll Register at every approval. Matching a bank debit weeks later is far easier with the report in hand.
Common mistake: Treating an unrecognized tax-impound debit as an error. It is your payroll taxes, debited separately from net pay. Match it to the Payroll Cost Report of the corresponding approved payroll.
What this affects elsewhere
- Voids. If UZIO voids a payroll at your request, the tax amounts are adjusted in the subsequent payroll. A void in a previous quarter can require amended returns. See Reviewing Past Payrolls and Requesting a Void (Payroll History).
- Garnishments. Payroll-remitted garnishments follow the same impound or direct-debit path as taxes. See Setting Up Employee Garnishments.
- Accounting. Impounded taxes are a liability until UZIO remits them. See Understanding Payroll Accounting.
Still stuck?
If a tax debit does not match your reports, a deposit appears late on an agency portal, or you need to confirm whether your company impounds, please reach out to us at support@uzio.com or call +1-571-601-1752. Include your company name, the Payroll Number and pay date, the debit amount and date from your bank statement, and the agency concerned.
Related articles
- Processing a Regular Payroll
- Adding Federal Tax Information: deposit schedules
- Adding State Tax Information
- Adding Company Bank Account Information
- Year-End W-2s and Tax Documents: quarterly Tax Filing Reports
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