I have an employee who is a minister. After the fact, our board approved reclassifying some of his salary to Housing Allowance and Furnishing/Utilities. These categories are
Additions to Pay in the Payroll Item List
Listed under Other Payroll Items on the check when inputting payroll
Listed under Adjustments to Net Pay on the paystub
Show up in Box 14 of the W-2.
I have two direct deposits that have already cleared. I would like to update them. This will NOT change the net pay. Even if I Unlock Net Pay, QB will not allow me to change the Salary amount. How can I get around this problem? Can I remove his salary by editing employee, make the adjustments to the cleared direct deposits and then put the new salary back on the employee record? If I can't adjust the previous direct deposits, can I safely make all the corrections on his current direct deposit by removing his salary on the employee record and making positive and negative adjustments to these 2 items and Salary?
I have some information about editing cleared direct deposit paycheck. While you can't edit cleared paychecks, your second option will be a great choice. Make the adjustment and the correction on your employee's current direct deposit to catch up on the previous direct deposit paycheck.
Here's how to create an adjustment:
Go to the Employees menu at the top.
Select Payroll Taxes and Liabilities, and then pick Adjust Payroll Liabilities.
Tick the Employee radio-button and choose the employee name from the drop-down.
Click the payroll items that need adjustment under the Item Name and Amount column.
Hit Next Adjustment for your next employee or OK to close the window.
Here's how it looks like:
After creating an adjustment, pull up a payroll summary report to check the year-to-date information of the employees. For details about employee adjustment and reports, check out these guides.
Thank you for the information, but this doesn't work. I am trying to reduce salary YTD and increase the 2 Additions to Pay. The instructions below only fix payroll liabilities or taxes, neither of which are involved here. I can't select any of the items that I need to adjust.