I appreciate your prompt reply, @3rriverview.
I've come to share some information about updating payroll taxes in QuickBooks Desktop and help you update employees' taxes for the first and second quarters.
Changing the rate of a payroll item, like SUI, can cause incorrect wage and tax amounts on tax forms. To correct your employee's taxes for the first and second quarters, you'll want to enter a wage base and a tax adjustment. Here's how:
- Run and customize the payroll detail review report.
- From the report, verify that tax amounts are calculated correctly based on wage limit and tax rate. Then, determine if you want to decrease or increase the wage base and tax amount.
- Once done, go to the Employees menu and select Payroll Taxes and Liabilities. Then, choose Adjust Payroll Liabilities.
- Select the correct Effective Date (It should be the last day of the affected quarter) and click Employee Adjustment.
- Choose the affected employee and select the SUI from the Item Name column.
- Enter the amount of the adjustment in the corresponding column (negative to decrease, positive to increase).
- Click the Accounts Affected. Then, choose Do not affect accounts or Affect liability and expense accounts.
Once done, you can click the Next Adjustment button to enter adjustments for the rest of your employees. Then, run the Payroll Detail Review report again and verify the accuracy of the adjustments you entered.
I'm adding this article for more guidance: Adjust payroll liabilities in QuickBooks Desktop Payroll.
Please let me know how things go, @3rriverview. I'll be around to provide further assistance.
You may want to view and print payroll reports on QuickBooks Desktop. This will help you keep track of your payroll details and history, especially at year ends.
Have a good one.
