Changing the Tax Type of a QB Desktop payroll item deduction

Hi there, leeseinmt.

Let me share additional information about how payroll deduction items work.

The changes that you've made will only apply to the next paycheck within the same year. You'll still have to correct the YTD deductions on the paycheck to ensure that your tax forms and payroll reports are accurate. Here's how:

1. Go to the Employees menu.
2. Choose Payroll Taxes and Liabilities, then select Adjust Payroll Liabilities.
3. Enter the adjustment and effective date.
4. Select Employee Adjustment if the item you're adjusting is a company-paid item or choose Company Adjustment if you want the balance to be removed from the Payroll Liability Balances Report.
5. Choose the appropriate employee.
6. Select the item name you want to adjust, then enter the amount of the adjustment. Use a positive number to increase or a negative to decrease the amount.
7. Enter a memo as needed.
8. Select Accounts Affected and then OK.
9. Repeat for other employees if you need to, and then click OK.

I'm also adding these articles to learn how to fix common payroll/tax item issues in QuickBooks Desktop:

• Edit payroll items used on paychecks

• Resolve year-to-date (YTD) additions or deductions on a paycheck when the wrong tracking type was us...

Just tag me in your comments and posts if you need more help in dealing with your other payroll tasks. Have a great rest of the day.

Hi leeseinmt,

Hope you’re doing great. I wanted to see how everything is going about the issue in your payroll deduction item. Was it resolved? Do you need any additional help or clarification? If you do, just let me know. I’d be happy to help you at anytime.

Looking forward to your reply. Have a pleasant day ahead!

Thanks @KlentB .  This worked great for exsiting EEs.  Since I can't create a $0 paycheck, how would I address this for terminated employees?  Apologies if you already addressed this but I overlooked it.  Thanks again for your help!

Hello @leeseinmt,

I appreciate you for getting back to us here in the Community. I know how important choosing the correct tax tracking type is for the deduction in QuickBooks.

By doing so, we'll be able to ensure it reports correctly in W2 forms. Allow me to step in and help you create the changes in the system.

Since terminated or inactive employees will not be available for the adjustments, I recommend editing the profile. You'll need to reactivate the employee temporarily for the correction.

Here's how:

1. Click the Employees tab at the top menu bar.
2. Select Employee Center.
3. Filter to All Employees. 
4. Double-click the name.
5. Go to the Employment Info.
6. Go to the Termination tab.
7. Take note of the termination details.
8. Clear the information.
9. Hit OK. 

After updating the employee information, you can follow the steps provided by my colleague. You should now be able to perform the adjustment.

I've also attached an article you can use to learn about the payroll subscriptions supported for printing W-2 forms: Print your W-2 forms.

Drop me a comment below if you further assistance correcting payroll forms in QuickBooks. I'll be happy to help you some more.