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Changing Payroll Tax Payment in QuickBooks Online When Liability is Incorrect

Is there a way to adjust the payroll tax payment that QuickBooks automatically creates based on the accrued amount from each payroll?  Our client has been accruing company paid payroll taxes for an employee who is exempt.  They have been posting the tax payment that QuickBooks creates based on the accrual and then they are also posting a check for the actual amount they paid (so duplicate payments for different amounts).  In QuickBooks desktop the accrued amount could be adjusted to reflect the actual payment with the offset account being payroll taxes.  Is there a way to adjust the tax payment amount that QuickBooks online creates?  I can delete the payment, but then it just shows back up as a past due tax payment (which they would just end up creating again).  The only other way I can figure is to post both payments and then do a journal entry to back out the incorrect amount out as to not duplicate it. It would however, then be an in and out of the checking account which is not preferable.

1 Comment
QuickBooks Team

Changing Payroll Tax Payment in QuickBooks Online When Liability is Incorrect

Let's get your payroll records accurate, Shannon36.


Unlike the Desktop version, adjusting payroll liabilities is currently unavailable in QuickBooks Online. I would recommend contacting our Payroll Team. They'll need to access your account so they can create the adjustment for you. 


Here's how to reach out to them:


  1. Go to the Help menu and click Contact Us.
  2. Let the know that you need to make payroll adjustments, then click Let's talk.
  3. Select the Chat or Get a callback option. 

After the adjustments are entered, you'll want to run a payroll report to verify if the amounts are already correct. Just go to the Reports menu and look for Payroll Tax Liability or Payroll Tax Payments


We're always here if you need anything else. Just add a reply below and we'll be happy to jump right back and help you again. 

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