"but in this case how should I categorize the taxes he paid already"

It depends on what you want to have happen when the refunds arrive. Let's assume the owner will keep all the money when it comes back to the company.

Let's understand that Payroll Expense is Gross Wages + Employer share of taxes.

The Wage expense account and the Payroll Tax expense account need to be changed to Equity type; then you can merge them into Draws.

Make sure to fix Jan 2021 and to confirm there are no Payroll Liabilities waiting to be paid.

Also,

Please visit the QuickBooks Help site for the answers to support your QB questions.

Thanks.