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General Ledger

I had a payroll that no taxes were taken out. FICA fixed itself but my federal and state did not and my general Ledger is showing my employees owe the money even though it has been paid. What do I need to do with the balence left in my gereral ledger which is the federal tax amount?

1 Comment
Anonymous
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Re: General Ledger

Hey there, @Toya1,

 

I want to make sure you're able to correct your taxes in QuickBooks.

 

We can use the Payroll Detail Review report to verify the taxes withheld and the difference. Here's how:

  1. Go to the Reports menu.
  2. Select Employees & Payroll.
  3. Choose Payroll Detail Review.
  4. Click Customize Report tab (if you want to run a specific report).
  5. Choose the Display tab and select the date range from drop down list or fill in the From and To dates.
  6. In the Filters tab, choose Payroll Item from the Filter section. Select Multiple payroll items in the Payroll Item drop-down.(See screenshot.)
  7. Select the taxes you need to adjust.
  8. Once done, click OK twice.

On the report, review if the checks have the correct deductions. You can get the correct calculation by multiplying the total wage base of each payroll items to its corresponding tax rate. If the figures are correct, then there is no action to be taken next.

 

However, if QuickBooks underwithheld the taxes, there are 2 ways to remedy the situation. Here's how:

  1. Choose Employees.
  2. Select Payroll Taxes and Liabilities.
  3. Choose Adjust Payroll Liabilities.
  4. Select the correct Effective Date. It should be the same date as the last paycheck of the affected quarter or today's date if doing an adjustment that affects current quarter only.
  5. Select the Employee radio button if the adjustment affects the employee's YTD and Company if the adjustment is a company contribution.
  6. In the Taxes and Liabilities section, click the Payroll Item column and select the correct payroll item to adjust.
  7. Click Accounts Affected, choose Do not affect accounts or Affect liability and expense accounts.
  8. Click OK.

That should correct the General Ledger report, @Toya1. You can check out this article to know more about creating liability adjustments in QuickBooks Desktop: Adjust payroll liabilities

 

 If you require any further information, feel free to contact me by clicking the Reply button below. I'll be more than happy to help. Have a great day!

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