cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
Super Explorer *

Adjust Payroll liabilities to back out credit used

Kind of a long story, but need to be sure this is done correctly:

We overpaid our 941 liability in Q3 2018, so had a credit with the IRS.
The credit on our account was overstated in QB so the Q4 taxes were paid short. I have paid the amount owed and the IRS account is current, but need to get QB in line with the correct liabilities.

 

First - how do I adjust those liabilities to reflect the correct credit amount?

Second - how do I record the payment made directly at the EFTPS site in QB?

Third - how do I record the interest and penalties that were included with that payment?

Solved
Best answer 04-22-2019

Accepted Solutions
QuickBooks Team

Re: Adjust Payroll liabilities to back out credit used

Hello there, ekileen.

 

Thanks for checking in with us. I want to make sure all your payroll concerns are taken care of.

 

For liability adjustments, I'll be sharing with you this article that will guide you through the whole process of making payroll liability adjustments in QuickBooks Desktop: Adjust payroll liabilities.

 

For your second question, you can use the Enter Prior Payments option if the liabilities were not entered in QuickBooks. 

 

Here's how:

  1. Go to the Help menu.
  2. Then choose About QuickBooks. And press Ctrl+Alt+Y.
  3. Choose the date range. Then select Next until you see the Create Payments button.
  4. Under Item Name, select the drop-down arrow. And choose the item you need to create a prior payment for.
  5. Verify the dates and update as necessary.
  6. Select Next Payment to enter another prior payment.
  7. Select Done.

To know more about this, here's a helpful article that you can refer to: Enter historical tax payments in Desktop payroll.

 

Lastly, you can record interest and penalties that were included with the payment by writing a check and entering the accounts (interest and penalties) under Expenses tab.

 

Here's how:

  1. Go to Banking.
  2. Click Write Checks.
  3. From the Expenses column, 
  4. Click Add new to add the penalty account under the Account column. Do the same thing for interest.
  5. Enter other necessary information.
  6. Click Save and Close.

You should be all set. Be sure to keep in touch with me here should you have any additional payroll questions or concerns. I'm here to help.

1 Comment
QuickBooks Team

Re: Adjust Payroll liabilities to back out credit used

Hello there, ekileen.

 

Thanks for checking in with us. I want to make sure all your payroll concerns are taken care of.

 

For liability adjustments, I'll be sharing with you this article that will guide you through the whole process of making payroll liability adjustments in QuickBooks Desktop: Adjust payroll liabilities.

 

For your second question, you can use the Enter Prior Payments option if the liabilities were not entered in QuickBooks. 

 

Here's how:

  1. Go to the Help menu.
  2. Then choose About QuickBooks. And press Ctrl+Alt+Y.
  3. Choose the date range. Then select Next until you see the Create Payments button.
  4. Under Item Name, select the drop-down arrow. And choose the item you need to create a prior payment for.
  5. Verify the dates and update as necessary.
  6. Select Next Payment to enter another prior payment.
  7. Select Done.

To know more about this, here's a helpful article that you can refer to: Enter historical tax payments in Desktop payroll.

 

Lastly, you can record interest and penalties that were included with the payment by writing a check and entering the accounts (interest and penalties) under Expenses tab.

 

Here's how:

  1. Go to Banking.
  2. Click Write Checks.
  3. From the Expenses column, 
  4. Click Add new to add the penalty account under the Account column. Do the same thing for interest.
  5. Enter other necessary information.
  6. Click Save and Close.

You should be all set. Be sure to keep in touch with me here should you have any additional payroll questions or concerns. I'm here to help.