Correcting Payroll Liabilities Due to Late Payroll

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.

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.

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@ChiColorLabel wrote:

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.

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@ChiColorLabel wrote:

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.

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