Experienced Member

should we correct pastor's paycheck if SS only taxes were taken out in error? Payroll tax liability already paid.

the pastor's check does not have any taxes taken out, but social security was taken out by mistake.  Taxes are already paid because we pay taxes after every pay period.  941 has not been issued yet.  Should we correct or just let it go?  the 941 shows two different amounts for SS wages and Medicare wages?

QuickBooks Team

Re: should we correct pastor's paycheck if SS only taxes were taken out in error? Payroll tax lia...

Hello there, @bobbieK.

 

You can definitely correct a pastor's paycheck by adjusting its payroll liabilities. And I'd be glad to assist you with this.

 

Since the payroll tax liability has been paid. Let's use a liability adjustment to correct an employee's information. Please follow these steps below:

 

  1. Create a Payroll Summary Report.
  2. Change the date range on your Payroll Summary Report to match the effective date on your liability adjustment.
  3. Note the amount on the Payroll Item that needs adjustment.
  4. Go to the Employees menu, select Payroll Taxes and Liabilities, then Adjust Payroll Liabilities.
  5. In the Date field, enter the date for which you are making the adjustment.
  6. In the Effective Date field, enter the date that you want this adjustment to affect your liability balance.
  7. Choose either Employee Adjustment or Company Adjustment to associate this liability.
  8. In the Taxes and Liabilities section, from the Item Name column drop-down, select the correct Payroll Item.
  9. In the Amount column, enter the amount of the adjustment.
  10. Select Accounts Affected, choose either Do not affect accounts or Affect liability and expense accounts, then select OK.

You can read this article for the detailed steps and information: Adjust Payroll Liabilities.

 

Regarding your 941 forms, you can manually calculate the taxes to correct it. And yes, the 941 shows different amounts for SS wages and Medicare wages.

 

However, I still encourage seeking assistance from your accountant so they can offer some advice regarding this matter.

 

Fill me in if you have any other questions managing your payroll. I'll be around if you need any help.