cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
Not applicable

Hi! How do you record a partial payment of monthly payroll tax in qbo? There is no option to change the amount in the payroll tax module..Thank you!

payments to CRA for payroll overlap actual monthly amounts due (ie; don't match remittance due).

16 Comments
QuickBooks Team

Hi michele, I'd be glad to help you record a partial tax...

Hi michele,

I'd be glad to help you record a partial tax payment in QuickBooks.

Here are the steps on how to record a manual tax payment:

  1. Select Taxes from the left menu, and then Payroll Tax.
  2. Click Enter Prior Tax History.
  3. Click Add Payment.
  4. Select the tax type and the liability period then enter:
    • Payment Date
    • Check Number (optional)
    • Notes (optional)
    • Tax Item Amounts
  5. Click OK.
  6. You will then be back to the Prior Tax Payments screen.

Once the payment is recorded, it will reduce the liability showing due on your account. I've added some screenshots underneath that will guide you through the steps.

Please don't hesitate to leave a comment below if you have any more questions about payroll taxes.

Not applicable

OK, but when I do that, there is no record in the bank ac...

OK, but when I do that, there is no record in the bank account (can't reconcile with bank). What now?
Not applicable

Yes, here too, what do I do now?

Yes, here too, what do I do now?
QuickBooks Team

Hi @michele and @sheila.eckford, Thanks for responding....

Hi @michele and @sheila.eckford,

Thanks for responding.

For the accounting side, you need to write a check of the tax payments. This way, it'll be posted in the register.

I'm a comment or post away if you have any other questions.
Not applicable

Hello.  Do you know what account do you have to use to wr...

Hello.  Do you know what account do you have to use to write the check?
Community Contributor **

I'm in the same situation.  Sounds like this feature need...

I'm in the same situation.  Sounds like this feature needs an update, because if you made a tax payment those funds clearly came from somewhere.  There should be a bank account option on this entry.  We double paid a payroll tax last month and I need to reflect it in the bank balance as well as the tax liability.  If a check is written to decrease the bank balance, there's no logical expense or liability account to code it to.  Entering it towards payroll taxes will be increasing the tax expense (which you don't want to do) and coding to the tax liability will throw other things off.  Please give us a better fix.
Established Community Backer ***

Re: I'm in the same situation. Sounds like this feature need...

Here is what I do if I under or over remit.

 

1.  Ensure you have made whatever correction to your payroll records which has caused your remittance amounts to be out. 

 

2.  Do not change the payment that has already been made - what came out of the bank is a done deal and cannot be changed.  Once you've made your changes in 1. above, all that will happen is that your liability account will now have either a negative or positive balance that you will pick up on your next remittance, depending upon whether you under or overpaid. (In the case of your example, you should already be showing a negative payroll liability if you double paid last time.)

 

3.  Print out your PD7A Summary only covering the period where things went wrong.  Write in the amounts that should have been remitted next to what actually was remitted.  Calculate the differences and make a note that you will adjust on next remittance.

 

4.  Print out your PD7A Summary for the period in which you will make the adjustement . .  usually the current period.  Create a column down the right side and write in all the differences between what you remitted last time and what you should have remitted.  Create another column down the right of that column, adding together the current period's PD7A amount and the adjustment amount.  Add the final column up and it should equal what your payroll liability balance is.

 

See attached for examples of similar small issues I had last year.  In this case, I discovered that an error was made in an employee's group insurance benefit, changing the amount of CPP and tax that should have been remitted.

Period correction was necessary.jpg Period remittance was adjusted.jpg

Community Contributor *

Re: I'm in the same situation. Sounds like this feature need...

The issue is that the payment screen doesn't allow you to change the payment amount. These are reports from Desktop that you've posted, Rochelley? My Payroll Tax Liability account balance is $12,231, but the screen where I record a tax payment shows 100% of this month's payroll taxes $14,251.98. There was an overpayment that I need to compensate for.

 

I guess I need to record a payment for the full amount, and then make a journal entry to debit the bank and credit payroll liabilities for the difference. Matching both of those when I reconcile.

Established Community Backer ***

Re: I'm in the same situation. Sounds like this feature need...

Once you have filed your payroll taxes from the PD7A Summary, you always have the choice to 'pay now' or 'pay later' when you file the PD7A.  It doesn't matter which one you choose; pay now simply takes you to the Bill Payment screen, and 'pay later' means you have to go there yourself at some point.  In either case, a payble is created in your A/P ledger.

 

The overpayment from your previous remittance should be sitting as a credit in the pay bills screen.  Check off your current payment for $14,251.98 and apply the credit of the $2020.98 to that balance.  You will then only remit the difference of $12,231.00.

 

 

Established Community Backer ***

Re: I'm in the same situation. Sounds like this feature need...

I apologize - I didn't realize you were using QBO.  Yes, my screenshots are from Desktop.  I haven't used Payroll with QBO so I'm not completely sure how it handles the payroll taxes.  If it is anything like Desktop (which it likely is not) then somehow you should have a credit in your payables that you can apply to your current remittance.

QuickBooks Team

Re: I'm in the same situation. Sounds like this feature need...

Hi DynamiteBooks,

 

Allow me to quickly jump in here to shed some light on your Payroll Tax Liabilities overpayment.


You're certainly on the right track. You can record the payment in the full amount by going to the Payroll Tax Centre, and selecting Pay Taxes. You'll find this by clicking Taxes on the left navigation menu, then selecting Payroll Tax. Afterwords, you can use a journal entry to debit the bank and credit payroll liabilities for the difference.

 

Take a look at these helpful articles for more insight on how to record a Payroll Tax payment:

- Make payroll tax payments

- How to access your PD7A

- Payroll taxes and forms

 

If you have any other questions, please feel free to reach back out.

 

Cheers!

Not applicable

Re: I'm in the same situation. Sounds like this feature need...

So I did the check to the liability.  Also entered an adjustment through Enter prior tax history. 

 

The check affected the liability. 

 

I can't see the adjustment affected the expenses on the P&L. 

 

Thoughts?

QuickBooks Team

Re: I'm in the same situation. Sounds like this feature need...

Hi LJH1231. I want to make sure I'm on the same page as you. Are the dates ranges on your P&L matching with the date on the cheque? 

Not applicable

Re: I'm in the same situation. Sounds like this feature need...

Yes - my check was dated  7-31-19. 

 

I did the adjustment for 4-1-19 to 6-30-19 period.

 

 

QuickBooks Team

Re: I'm in the same situation. Sounds like this feature need...

I see. Just to clarify, your goal is to see the adjustment affecting the expenses on the P&L? 

Not applicable

Re: I'm in the same situation. Sounds like this feature need...

No, I don't want to affect the expenses.  Just the liability, which when I wrote the check it did. 

 

The adjustment seemed to affect nothing, so I think it's all good.  

 

I went back into the Pay Taxes screen and the FUTA amount due is now correct.

 

Seems silly we have to do both.