How to Change Paid Preparer in QuickBooks Online

Changing the paid preparer on your government tax forms is a small but critical task, and knowing how to update this in your company file ensures your filings are accurate and compliant. Whether you've hired a new accountant, brought payroll in-house, or are just correcting a typo, updating this setting in QuickBooks Online is straightforward once you know where to look. This article provides a to-the-point guide on locating the paid preparer settings, changing the information step-by-step, and verifying everything for clean tax filings.

Why Accurate Preparer Information Matters on Tax Forms

Before jumping into the "how-to," it's helpful to understand the "why." The paid preparer listed on your payroll tax forms—like Forms 941, 944, and 940—tells the IRS who is responsible for the information reported. This individual or firm attests to the return's completeness and accuracy based on the data you provided. Keeping this data current isn't just a matter of good record-keeping; it's a matter of compliance.

Here are the most common reasons you'll need to update this information:

• You hired a new CPA or accounting firm. If you've switched external accountants, you must update the preparer information so their name, firm, and Preparer Tax Identification Number (PTIN) appear on filings they are responsible for.
• Your in-house payroll manager has changed. When an employee who held the signing authority for payroll filings leaves and another takes over, their name and title must be updated to reflect the new responsible party.
• You are shifting from an outsourced accountant to in-house management. If your business has grown and you've decided to manage payroll completely internally, you must remove the old firm's information and designate the company officer responsible for signing.
• There was a simple error. Sometimes, the reason is as minor as a misspelled name or an incorrect PTIN. Correcting it as soon as it's discovered prevents potential filing rejections or notices from the IRS down the line.

Having the wrong person or firm listed can create confusion and assign liability incorrectly. If your former accountant is listed on a return they did not actually prepare, it misrepresents their involvement and creates a messy audit trail.

Step-by-Step: How to Change the Paid Preparer in QuickBooks Online

The paid preparer settings are tucked within the payroll tax section of your QuickBooks Online account. Before you start, ensure you are logged in as the Master Administrator or a Company Administrator with full payroll permissions; other user roles may not be able to see or edit these settings.

1. Navigate to Payroll Settings
   Start by clicking the Gear icon (⚙️) located in the upper right corner of your QBO dashboard. In the drop-down menu that appears, select Payroll Settings under the "Your Company" column.

2. Access Your Federal Tax Setup
   The Payroll Settings screen presents a list of preferences. Look for the box labeled Federal Tax. This is where your company EIN and filing form types are stored. Click the pencil icon or an "Edit" link within this section to open the details.

3. Locate the Paid Preparer Section
   After clicking "Edit," scroll down past your basic company information. You will arrive at a section asking about your company's signing officer and who prepares your filings. QuickBooks often titles this something like "Who signs and files your Form 941s/944s?" or references the "Paid Preparer."

4. Select the Correct Preparer Type
   QuickBooks will present you with options.

   • If you are moving from an external CPA to managing payroll internally, select the option that says something similar to, "I am a company officer and have signing authority."
   • If you have hired a new outside preparer, select the option like, "Yes, I have an accountant that prepares W-2s and 941s for me," or "Yes, I'm a third-party preparer."

5. Enter the New Preparer's Details
   This is the most critical step. After you select the appropriate option, new fields will appear for collecting the preparer's information. Based on whether you chose an internal officer or an external preparer, you'll need to provide the following:

   For an in-house company officer:

   • Your Name: The full name of the responsible officer (e.g., owner, CEO, CFO).
   • Your Title: The official title of that individual.

   For an external paid preparer:

   • Preparer's Firm Name: The legal name of the accounting firm.
   • Preparer's PTIN: The IRS-issued Preparer Tax Identification Number of the specific individual preparing the return. A PTIN is mandatory for anyone who prepares federal tax returns for compensation.
   • Preparer's Phone Number: The public business phone number.
   • Firm's EIN: The firm’s Employer Identification Number, if they have one.
   • Firm's Street Address: The full business address of the preparer's firm.

6. Save Your Changes
   Once you have double-checked that all the details are correct—spelling, PTIN validity, and addresses—click the Continue or Save button at the bottom of the section. QuickBooks will process the update and return you to the Payroll Settings menu.

Verifying the Change and Best Practices

Updating the settings is just the first part; ensuring the change takes effect correctly requires a few final checks. Here are some best practices to follow after you've updated the paid preparer information:

Run a Payroll Tax Preview

The information you entered will apply to all future payroll tax filings processed by QuickBooks. To quickly confirm the change, you can often preview your upcoming quarterly tax forms. Generate a draft of your next Form 941. Scroll down to the bottom where the signature and preparer information is located. You should see the newly entered person or firm's details correctly populated. If you still see the old information, double-check your settings, clear your browser cache, and try again.

Coordinate with Your Old and New Preparers

Professional communication prevents costly mistakes. When you make a switch, a clear transition plan is vital.

• Inform your old firm that they are no longer responsible for preparing your returns as of a specific date (e.g., "effective for Q3 2024 filings"). This prevents them from unknowingly filing on your behalf, which can lead to duplicate returns and IRS notices.
• Empower your new preparer by confirming that their information is loaded and correct in your QuickBooks Online file. They may need user access (added as an Accountant user) to pull reports and verify data more directly. They will also need you to sign a new set of e-file authorization forms, such as the Form 8879-EMP.

Check User Permissions

If you're assigning filing responsibility to an internal employee, make sure their QuickBooks user permissions align with their role. They may need upgraded permissions to manage payroll reports, submit tax payments, or resolve notices. Likewise, if this is managed by an outsourced CPA firm, they will need accountant-level access to your QBO account to perform their duties efficiently.

Troubleshooting Common Issues

Sometimes, the process isn't perfectly smooth. Here are a couple of frequent snags and how to handle them:

The fields are grayed out and I can't edit them.
This is almost always a user permission issue. Only the Master Administrator on a QuickBooks account has the authority to change company-wide information like this. Log out and log back in as the Master Admin, or ask them to make the change for you.

My accountant says they can’t see the option.
If your accounting firm manages your company file through their QuickBooks Online Accountant portal, some settings may be centralized on their dashboard rather than yours. In this scenario, your CPA may need to update the preparer from their side.

I changed the info, but the old name is still on the last form I filed.
This is expected behavior. The change is not retroactive. It only applies to filings generated after the update. Forms already filed with the IRS will permanently bear the name of the preparer who was responsible for that specific period.

Final Thoughts

Updating the paid preparer in QuickBooks Online ensures your federal payroll tax filings accurately reflect who is vouching for the data. By following the steps to navigate to Payroll Settings, editing your federal tax information, and entering the new details, you can maintain compliance and a clean audit trail across reporting periods.

Managing these details for dozens of clients is why a CPA's work is so complex; every filing requires deep knowledge not just of the software, but of the ever-changing tax code. At Feather, we built our platform to help professionals answer complex tax questions INSTANTLY. When you're stuck researching state nexus requirements or need the exact IRC citation for a client's "what-if" scenario, Feather AI delivers the citation-backed answers in seconds. This allows you to focus on strategic advice instead of getting lost in tax research.