How do you delete a liability adjustment? I made some payroll liability adjustments and I need to delete them. How do I do this?

Open each one like you'd open a check or invoice or other transaction and then delete it.

"I can see that transaction in the payroll transaction tab under Liability Adjustments, but Ctrl-D didn't work and if I right click the transaction and choose Edit Transaction, it takes me to the original entry menu where there is no delete option."

Double-click it from the Listing, to Open it. Now you can Edit, Update, Delete, etc.