cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
Experienced Member

Accidentally withheld pretax deduction that should have been after tax

I accidentally withheld an employee's health insurance deduction for their dependent (employee paid) as a pretax deduction when it should have been an after tax deduction. I did this for three paychecks. I know this will affect taxes. How do I correct for this? Thanks in advance!

Solved
Best answer 04-18-2019

Accepted Solutions
Moderator

Re: Accidentally withheld pretax deduction that should have been after tax

Thank you for posting in the Community, @SMCWP.

 

I'm here to help correct the deducted pretax from your employee's health insurance. 

 

You'll need to make a liability adjustment to the paychecks you've already created for this employee and make sure to change the tax tracking type for the health insurance so that you won't have any issues moving forward.

 

Let me route you to this article for the detailed steps in adjusting payroll liabilities: Adjust payroll liabilities.

 

Here's how to edit the tax tracking type for the health insurance deduction:

 

  1. Go to the List menu and select Payroll Item List.
  2. Right-click on the payroll item and select Edit Payroll Item.
  3. Click Next until you reach the Tax tracking type window.
  4. Select the correct tax tracking type.
  5. Click Next until Finish.

Should you need further assistance in the adjusting liability, you can always reach out to our chat support for help. They'll be able to access your account in a secure environment and guide you with the process using their screen share tool.

 

That should do it. Keep me posted if you have additional questions about payroll corrections. I'm always here to help.

3 Comments
Moderator

Re: Accidentally withheld pretax deduction that should have been after tax

Thank you for posting in the Community, @SMCWP.

 

I'm here to help correct the deducted pretax from your employee's health insurance. 

 

You'll need to make a liability adjustment to the paychecks you've already created for this employee and make sure to change the tax tracking type for the health insurance so that you won't have any issues moving forward.

 

Let me route you to this article for the detailed steps in adjusting payroll liabilities: Adjust payroll liabilities.

 

Here's how to edit the tax tracking type for the health insurance deduction:

 

  1. Go to the List menu and select Payroll Item List.
  2. Right-click on the payroll item and select Edit Payroll Item.
  3. Click Next until you reach the Tax tracking type window.
  4. Select the correct tax tracking type.
  5. Click Next until Finish.

Should you need further assistance in the adjusting liability, you can always reach out to our chat support for help. They'll be able to access your account in a secure environment and guide you with the process using their screen share tool.

 

That should do it. Keep me posted if you have additional questions about payroll corrections. I'm always here to help.

Experienced Member

Re: Accidentally withheld pretax deduction that should have been after tax

Thank you! You resolved my issue.

Moderator

Re: Accidentally withheld pretax deduction that should have been after tax

You're most welcome, @SMCWP.

 

It's a pleasure to shed some light on correcting your pretax deduction. :)

 

I'm including this article just in case you need some payroll references in the future: Payroll Features and Services for QuickBooks Desktop.

 

I'm also here to help if you have additional questions about your payroll. Best regards.