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Community Explorer **

Adjust payroll liabilities

I under withheld social security from an employee's paycheck on the last paycheck of last year. I am trying to figure out how to adjust the accounts so that I can make my liabilities payment and how to withhold the amount from the employee's future check but still have it come out on last years payroll reports (for tax purposes). I have tried using Adjust payroll liabilities which fixes the accounts in Quickbooks but I am unsure how to proceed from there or if that is the correct way to do it. Thank you.
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Best answer 01-03-2019

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Established Community Backer ***

Re: Adjust payroll liabilities

I would not use adjust liabilities to correct this. Instead I would edit the paycheck by 

  1. correct the under withholding
  2. add the difference as Employee Advance
  3. In a future check deduct the repayment of Employee Advance

Otherwise you would have to adjust liabilities a second time in 2019 . Your employer share is affected as well by the under withholding

View solution in original post

2 Comments
Established Community Backer ***

Re: Adjust payroll liabilities

I would not use adjust liabilities to correct this. Instead I would edit the paycheck by 

  1. correct the under withholding
  2. add the difference as Employee Advance
  3. In a future check deduct the repayment of Employee Advance

Otherwise you would have to adjust liabilities a second time in 2019 . Your employer share is affected as well by the under withholding

View solution in original post

Community Explorer **

Re: Adjust payroll liabilities

Thanks.  I was just wanting to make sure it didn't affect our annual taxes when the time came.  I actually got the company withholding right I just missed a number when typing the employee side.

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