Colorado FAMLI Tax Deduction Catch Up Deduction

mpurc1 · ‎February 05, 2023

Hello, My Colorado Famli Tax Deduction was not set up correctly originally in QB Desktop for the first 2 payrolls run in 2023. I have corrected it so that it is calculating correctly now but it was calculating $0 for the previous 2 pay periods. How do I edit this so that my total amount will be correct for the quarter? On the next paycheck, is there a way to add the missing amount that was supposed to be deducted in the first 2 periods so that my quarter total will be correct? Will QB Desktop automatically correct for this at quarter end? We only have 4 employees so I am happy to calculate by hand and go in and correct but I don't want to if it will mess things up further. Sorry, I am a novice at this. Please advise and thank you for your help!

JoesemM · ‎February 05, 2023

Thanks for joining the Community space, @mpurc1.

I'm here to help share information on how you can record the two pay periods that shows $0 and to add the the amount that needs to be deducted.

Since it's already corrected and now calculating correctly, you'll want to create a payroll summary report for the specific quarter to determine the YTD amount of the incorrect payroll item for each employee. You can write the amount or print the report.

Here's how:

Go to Reports and select Employees and Payroll.
Select Payroll Summary.
Adjust the date range appropriately.
In the Show Columns dropdown, select Total only.

For more information, see this article: Create a payroll summary report in QuickBooks. It also contains steps on how to run a summary report for each employee.

Once done, you can now edit the two pay periods using the payroll summary report. If the YTD amount of the incorrect item is more than the amount of your employee's wage, you’ll need to make corrections on more than one paycheck. Let me guide you on how:

Go to Employees, then select Payroll Center.
Click Start payroll (scheduled or unscheduled).
Enter a checkmark next to the employee you want to edit, then select Open Paycheck Detail.
Enter your employee's wages in the Earnings section.
Clear all payroll items in the Other Payroll Items section.
Add other payroll items, as needed.
Click Save & Close.
Repeat steps 3-8 for each affected employee.
Continue processing payroll as normal.

For complete details, refer to this article: Fix a payroll item with incorrect tax tracking type in QuickBooks Desktop Payroll.

I'll be sharing these articles that will guide you in running your payroll in QuickBooks:

If there's anything else you need help with, let me know by adding a comment. I'm always here for you. Have a good one.

View solution in original post

JoesemM · ‎February 05, 2023

Thanks for joining the Community space, @mpurc1.

I'm here to help share information on how you can record the two pay periods that shows $0 and to add the the amount that needs to be deducted.

Since it's already corrected and now calculating correctly, you'll want to create a payroll summary report for the specific quarter to determine the YTD amount of the incorrect payroll item for each employee. You can write the amount or print the report.

Here's how:

Go to Reports and select Employees and Payroll.
Select Payroll Summary.
Adjust the date range appropriately.
In the Show Columns dropdown, select Total only.

For more information, see this article: Create a payroll summary report in QuickBooks. It also contains steps on how to run a summary report for each employee.

Once done, you can now edit the two pay periods using the payroll summary report. If the YTD amount of the incorrect item is more than the amount of your employee's wage, you’ll need to make corrections on more than one paycheck. Let me guide you on how:

Go to Employees, then select Payroll Center.
Click Start payroll (scheduled or unscheduled).
Enter a checkmark next to the employee you want to edit, then select Open Paycheck Detail.
Enter your employee's wages in the Earnings section.
Clear all payroll items in the Other Payroll Items section.
Add other payroll items, as needed.
Click Save & Close.
Repeat steps 3-8 for each affected employee.
Continue processing payroll as normal.

For complete details, refer to this article: Fix a payroll item with incorrect tax tracking type in QuickBooks Desktop Payroll.

I'll be sharing these articles that will guide you in running your payroll in QuickBooks:

If there's anything else you need help with, let me know by adding a comment. I'm always here for you. Have a good one.

mpurc1 · ‎February 05, 2023

Joesem M (moderator)

Thank you for the reply! I want to make sure that I am understanding.

I have gone in and adjusted my payroll liabilities for each employee so now my YTD info is correct for my FAMLI amount. Will QB Desktop automatically deduct the additional tax amount that was not deducted on the first two payrolls the next time I run payroll or do I have to do that manually? Since I have manually adjusted the payroll liability, if I manually deduct the additional amount, it seems like the YTD amount may be off.

Thank you again for your help!

mpurc1 · ‎February 20, 2023

Thank you so much! I got it figured out on this payroll and it worked perfectly. I appreciate your response. Have a great day!

do630 · ‎April 21, 2023

I have Quickbooks desktop enhanced payroll.

We set up our FAMLI as 50/50 split between employer and employee. I realized after the quarter end that deductions were not taken from the first payroll of 2023. FAMLI said it is a penalty offense to retroactively deduct. Instead, the employer is responsible for the .09% of that payroll!! PENALTY. Do not deduct retroactively!!!

I had to enter payroll adjustments for the first payroll to properly show the FAMLI entirely applied to the employer, gross wages and taxable wages. One employee met the max so I had to enter correcting payroll adjustments for gross wage and taxable wage show correctly on reports. It took several calls to QB and FAMLI. I have to say, I was very disappointed in the la k of knowledge by the QB support. I figured it out on my own.

I submitted the report via FAMLI’s portal and paid the correct amount.

Now, when I process my next payroll, I can see that on each paycheck for colorado employees, the employer vs. employee contribution is not equal because of that first payroll FAMLI having been entirely applied to the employer.

However, I ran a test and if an employee reaches the $160,200 max, the Quickbooks calc attempted to deduct in excess of the cap. So for example, if Jon Doe only had $50 to reach his max deduction, Quickbooks attempted to deduct .045% of his entire wages, well over $50, so I’d have to manually override that and for the rest of the year I know I will have to watch this due to the automatic deduction settings in QB.

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Colorado FAMLI Tax Deduction Catch Up Deduction