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Top 5- Year End Payroll

0 0 1023

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Hello Community! Welcome back to another Top 5.  If you’ve been wondering how to go about making a direct deposit correction, how to delete a payroll item, or even how to cancel a scheduled payroll then you’re in the right place. This time around I’m going to be focusing on the top Year End Payroll questions asked directly from our community.  
 
So let’s go through these together!  
 

1. How can I make a Direct Deposit correction in QuickBooks Desktop?

Great question! Let me walk you through how you can go about voiding Direct Deposit paychecks in QuickBooks Desktop.
 
Note: The direct deposit is scheduled to offload at exactly 5 PM Pacific Time two days prior to the paycheck date. If you need to make any changes to a direct deposit paycheck, you must void the payment you already sent before the offload schedule.
 
To void a direct deposit paycheck, you can follow these steps:
  1. At the top menu bar, click the Employees.
  2. Select Edit/Void Paychecks.
  3. Change both Show paycheck dates from/through dates to the date of the check.
  4. Select the paycheck you want to void.
  5. Click Void.
  6. In the pop-up box, enter Yes and click Void.
  7. Select the checkbox saying you agree to the terms and conditions of voiding the paychecks.
  8. Repeat the previous steps to include all checks that need to be voided.
  9. Once the check has been voided, close the Edit/Void Paycheck window.
  10. Click Employees at the top menu bar, and select Send payroll Data.
  11. Click Send.
 
That’s all there is to it!
 
For additional information on this topic, you can check out this article on how to cancel or stop a Direct Deposit paycheck.
 

2.How do I delete and edit a payroll item?

I’m glad you asked! Let’s talk about it.  
 
If you set up a payroll item incorrectly and used this payroll item on one or more paychecks, it could cause incorrect tax totals to be withheld. Additionally, year-end tax forms, such as the W-2, 941 and state forms could be incorrect and need to be fixed.
 
I’ll show you how to correct it.
 
  1. Edit the payroll item
    • Select Lists on the top menu bar. Then select Payroll Item List.
    • Right-click the item and select Edit.
    • Select Next twice. Enter the correct tax tracking type. Then select Next.
    • Select the correct taxes. Then select Next.
    • Select Calculate Based on Quantity. Then select Next.
    • Enter the limit type, if all the employees have the same rate and limit.
    • If the employees do not have a default rate and limit but do have the same rates and limits, enter the amounts.
    • Select Finish.

 

That should do it!
 
I'm also including an article that goes into detail about making changes to payroll items: Edit payroll items used on paychecks.
 

3. Can I run multiple payrolls in a pay period?

Totally! You can run multiple payrolls in a pay period in QuickBooks Online (QBO), and I'm here to show you how.
 
You can create your employee unscheduled checks for the current pay period. The system will let you choose your check dates that fall after your last check date and before your next payday. This is to keep your payroll taxes error-free.
 
To do this, here's how:
  1. Go to the Payroll menu.
  2. Select Employees.
  3. Click Run Payroll.
  4. Find the employee you want to pay, and then select Create another check.
  5. Enter employee compensation, including any salary adjustments, vacation or sick hours, and other pay types.
  6. Confirm the Pay period and Pay date.
  7. Select Preview Payroll, and then select Submit Payroll.
  8. If creating a paper check, handwrite or print the check and give it to the employee by the check date.
  9. Select Finish payroll.
 
After that, I recommend pulling up the Payroll Details report. This is to make sure the information (i.e., amount, taxes, and deductions) of the paycheck you've created is correct. Just go to the Payroll section from the Reports menu's Standard tab.
 
Also, QuickBooks Online provides payroll reports that'll give you useful details about your business and employees. If you wish to know more about them, you can refer to this article: Run payroll reports. It includes steps about printing, customizing, and marking them as your favorite.
 

4. How do I cancel a scheduled payroll?

Good question! You can cancel a scheduled payroll easily within your QuickBooks Online Account.
 
However, this option only becomes available if there's no employee assigned to the schedule you wish to delete.
 
To do so you’ll need to follow these steps:
  1. Go to the Gear icon.
  2. Select Payroll Settings.
  3. Tap Pay Schedules in the Payroll and Services section.
  4. Click Edit.
  5. Hit Delete to remove the payroll schedule.
 
You’re all set!
 
For additional details on managing your payroll schedules check out this article: Set up and manage payroll schedules. This lists schedule types available for QBO Payroll, including a short description of each.
I'd also suggest running your payroll on a single QBO company so you won't have any issues tracking payroll taxes and keeping your books accurate.
 

5. How can I categorize payroll in checking account transactions?

I got you covered! I’ll help you sort out your recorded payroll transactions.
 
Something to note is that the system automatically creates payroll accounts, and it's mapped by default to your payroll accounting preferences.
 
So if you want to use the payroll accounts you created, you can change the accounts in your payroll settings. Here's how:
 
  1. Click the Gear icon at the upper-right and select Payroll settings.
  2. Under the Accounting menu, click the pencil icon to edit.
  3. You can change the accounts as to where your payroll accounts should reflect in your Chart of Accounts.
  4. If you want to update existing transactions, you can set the date and then Continue.
  5. Click Done to save changes.
 
That’s it!
 
I'd highly recommend reaching out to an accountant in case you use the Close the Books feature just not to mess up your account.
 
Feel free to check out these articles that will help you manage your payroll information and reports:

 

I hope you enjoyed this top 5 and got some useful information out of it. As always, please feel free to let us know if you have any other questions here in the Community. See ya next time!

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