payments to CRA for payroll overlap actual monthly amounts due (ie; don't match remittance due).
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:
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.
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.
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.
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.
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.
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:
If you have any other questions, please feel free to reach back out.
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.
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?
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.