Resolve a payroll tax overpayment in QuickBooks Online Payroll

Learn how to handle overpaid taxes in QuickBooks Online Payroll.

Are you seeing a negative tax amount in your payroll product, or have a credit notice from the CRA? We explain how to resolve tax overpayment issues.

Resolve the overpayment

If you have overpaid payroll tax, you will receive a credit notice from CRA. You can resolve some payroll tax overpayments in your payroll product to correct your reports and tax forms. 

1. Go to Taxes and select Payroll tax (Take me there).
2. Select the Pay option in the Actions column.
3. Review an entry the Federal Taxes section and select Record payment to check the overpayment. Overpayments appear as negative amounts.
4. You can apply an overpayment to a previous year. See the article Enter historical payroll tax payments.
5. If you wish to obtain a refund or want to apply your overpayment to the next liability period, you can do so by contacting us. To have the refund credited to you, you will need to contact CRA as well.

The following are the reasons for tax overpayments. You can resolve some payroll tax overpayments in your payroll product to correct your reports and tax forms.

• One or more paycheques were voided or deleted after a tax payment was made
• You made a duplicate tax payment in the same liability period