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Community Explorer **

1st year doing Payroll, YTD Adjustments were added and now they are showing on W-2

This year at the beginning of quarter 2 we brought payroll in house and when we went through and set it up they had us add the YTD Adjustments that were paid through a payroll service.  Our employees were paid through them, now when I am trying to process their W-2 it is including the YTD adjustments?  Any advice would help

7 Comments
BRC
Established Community Backer ***

Re: 1st year doing Payroll, YTD Adjustments were added and now they are showing on W-2

Yes, YTD adjustments will always appear on tax forms.  They represent part of your employee's YTD pay.  Why do you want to exclude them?

Community Explorer **

Re: 1st year doing Payroll, YTD Adjustments were added and now they are showing on W-2

They were not payroll from our business we had a payroll service that issued our checks and that will be issuing their own W-2's to our employees.  

Established Community Backer ***

Re: 1st year doing Payroll, YTD Adjustments were added and now they are showing on W-2

Look at the FEIN; who paid them in the first part of the year: You, through an Outsourced Payroll Service provider? Or, Not You, but a Personnel Service Bureau?

 

Because right now, you have confusing data. If that wasn't your FEIN, there never should have been YTD Adjustments. That wasn't You, in other words. You "hired" them afterwards, in the same calendar year. Or, it Was You, as the same employer, but now you brought "payroll processing" in house.

BRC
Established Community Backer ***

Re: 1st year doing Payroll, YTD Adjustments were added and now they are showing on W-2

RE:

They were not payroll from our business we had a payroll service that issued our checks and that will be issuing their own W-2's to our employees.  

 
Oh.  Well that's tricky.  Will the W-2's be reported under the same company/EIN?  If so, while you need the YTD entries for proper tax calculation for the rest of the year, they should not appear on the W-2.  But QB doesn't have this option. 
 
So, the only things I can think of  are 1) to ask the payroll service to not issue W-2's (that's usually an option, or 2) to manually adjust all of the W-2's in QB to negate the other W-2's, or 3) to manually prepare the W-2's outside of QB.
Established Community Backer ***

Re: 1st year doing Payroll, YTD Adjustments were added and now they are showing on W-2

This is not Enough of the right information: "They were not payroll from our business"

Your FEIN or Not? That is a simple "yes, our FEIN all year" or, "No, not our FEIN until we took over mid-year."

 

"we had a payroll service that issued our checks and that will be issuing their own W-2's to our employees."

 

As soon as you state "their Own W2" you are defining Their FEIN, not Yours. That means these people were Not your Employees during that period, and you never should have entered YTD.

 

"Will the W-2's be reported under the same company/EIN?  If so, while you need the YTD entries for proper tax calculation for the rest of the year, they should not appear on the W-2.  But QB doesn't have this option."

 

Yes it does. But you don't use what does not apply.

 

"So, the only things I can think of  are 1) to ask the payroll service to not issue W-2's (that's usually an option"

 

No, it's not. There is no Option. The Employer and that FEIN are who reports W2. There is no Option under the Rules and Regulations.

 

"or 2) to manually adjust all of the W-2's in QB to negate the other W-2's"

 

Yes, if it never applied, and in reality there are two Employers and two FEIN, then the wage base and YTD limit amounts were also wrong all year.

 

"or 3) to manually prepare the W-2's outside of QB."

 

Not if that is Wrong. Right now, it appears the YTD was a mistake; there are two Employers involved, and your own tax entity accounting and Payroll data is wrong.

 

Time to take it off the internet and work with your own CPA.

Community Explorer **

Re: 1st year doing Payroll, YTD Adjustments were added and now they are showing on W-2

 Thank you for your reply I was able to fix this with my CPA. I appreciate your comments, they were paid from a different EIN number and I was able to remove the YTD Adjustments that were put in when they shouldn't of been. 

 

Thank you all

Established Community Backer ***

Re: 1st year doing Payroll, YTD Adjustments were added and now they are showing on W-2

Thank you for the follow up; some other peer user now has the opportunity to learn from your topic.