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New Member
October 10, 2026
Question

One-Time Withholding correction

  • October 10, 2026
  • 1 reply
  • 13 views

My payroll subscription was stuck in reactivation even though showing Active in CAMPS.  Got that resolved; however, one payroll cycle ran with no deductions.  Now the next payroll is retroactively taking out Social Security and Medicare but not the federal and state withholding from last pay period with no deductions. How can correct and deduct last pay period’s federal and state withholding?

1 reply

QuickBooks Team
October 10, 2026

You’ll have to perform a payroll liability adjustment to correct your employees’ year-to-date (YTD) figures. QuickBooks Desktop does not automatically adjust or catch up Federal Income Tax or State Income Tax on future paychecks if you missed deducting them from a past payroll. Here’s how:
 

  1. Go to Lists, then select Payroll Item List.  
  2. Click the Payroll Item dropdown at the bottom, then choose New.
  3. Select Custom Setup, then click Next. Choose Deduction, and then Next.
  4. Enter a clear name for the deduction.
  5. Select the appropriate Tax tracking type. Choose None if this is an after-tax recovery deduction.  
  6. Click Next through the account mapping screens.  
  7. Hit Finish.

 

If you have follow-up questions, don’t hesitate to add a comment below.