We entered Payroll a day late so our direct deposit will not happen until the first day of the next month (2/1/2022 instead of 1/31/2022).
Because of this, our payroll liabilities are not calculating correctly when we try to pay them from the "Pay Liabilities" tab in the Payroll Center - since QuickBooks is calculating them based on the 1/1/2022 - 1/31/2022 date range and in fact, the end of the pay period shows as 2/1/2022 due to the late payroll.
All of our payroll taxes are filed and paid electrically. Is there a way to adjust the liabilities so we can ePay the correct amounts from the "Pay Liabilities" screen?
It doesn't matter for tax reporting when your DD payment will clear.
Only the dates on your paychecks matter. If your paychecks are dated in February, then your any taxes that result from them are not due until February. Taxes are never due before the paycheck dates.
At the same time, not delivering payroll on time is an issue - referred to as "holding" payroll. Basically, you can't be late. It's not allowed. If this happens again, then to remain compliant with labor laws you should forgo the DD orders and instead cut paper checks and deliver them to your employees on time, on payday.
Thanks BigRed... all good information. However, do you have any advice/process for how to accomplish the goal mentioned in my post? The Pay Liabilities screen is only calculating one payroll since the 1/31/22 payroll isn't going out until 2/1/22.
RE: Thanks BigRed... all good information. However, do you have any advice/process for how to accomplish the goal mentioned in my post?
If your payroll is on 2/1, then it is in a January liability, so there is nothing to fix.
RE: The Pay Liabilities screen is only calculating one payroll since the 1/31/22 payroll isn't going out until 2/1/22.
As is should, as you only have on payroll in January.
RE: I was able to fix this by editing the paycheck using Employees --> Edit/Void Paychecks and changing the check date from 2/1/2022 to 1/31/2022.
That's not really a fix. If your payroll was on 2/1, if the paycheck stubs you handed your employees were on 2/1 and they will receive their pay on 2/1, then your payroll and the resulting liabilities are on 2/1. Backdating your payroll to the prior month is just falsifying your payroll records to indicate something that didn't happen.