create negative paycheck

lisainnj · ‎December 21, 2020

I need to deposit money into federal withholding for two owners - it MUST come through payroll for tax purposes.

I was able to create an unscheduled payroll and save the negative checks - but QB will not let me process them.

MANY hours and chats, phonecalls, etc. lead me to believe there are no accountants or bookkeepers on the support staff. The last person would not even use glance to see what I was speaking about and his email to 'help' me did not arrive at either of the two email addresses I gave him (the second address was given when the first email failed to arrive).

I found EXACTLY what I wanted to do on an outside support site, but it works only for payroll online, not desktop. http://www.reconcilebooks.com/quickbooks-payroll-negative-paycheck/#:~:text=If%20your%20employee%20d...

is there a way to accomplish this through Enterprise desktop?

BigRedConsulting · ‎December 21, 2020

You can't create a negative check because such a thing doesn't exist.

In order to create a paycheck with taxes withheld you'll need another item to bring the check amount up to 0.00, such as an earnings item or an addition.

View solution in original post

MichelleBh · ‎December 21, 2020

I'll ensure that you'll achieve your goal about withholding in QuickBooks Desktop, @lisainnj.

This isn't the practice that I want you to undergo for our Customer Care Team. Here in QuickBooks, we make great efforts to deliver customer satisfaction at all times. I'll take note of your experience and feedback here on my end. So I can forward this to our higher tier to take action on it.

Yes, I agree with BigRedConsulting that you're unable to create a negative paycheck. That's why QuickBooks didn't process it. With this, I'd suggest adjusting the liability or creating an item or addition as what BigRedConsulting mentioned above.

Here's how:

Go to the Employees menu, then Payroll Taxes and Liabilities, and select Adjust Payroll Liabilities.
Choose either Employee or Company Adjustment in the field.
Complete the Item name, Amount, Wage Base, Memo, etc.
Choose Accounts Affected, then hit OK.
Pick Do not affect accounts to leave balances unchanged for the liability and expense accounts.
Elect Affect liability and expense accounts to enter an adjusting transaction in the liability and expense accounts.
Tap OK.

For the detailed steps, check out this article: Adjust payroll liabilities in QuickBooks Desktop.

I'd still advise you to communicate with an accountant because adjusting payroll liabilities is a little bit tricky. Doing this is to avoid a problem soon.

Additionally, I'd added articles about the various tasks for the incoming tax season and other topics.

Let me know if you have follow-up questions. I'm glad to help.

View solution in original post

BigRedConsulting · ‎December 21, 2020

You can't create a negative check because such a thing doesn't exist.

In order to create a paycheck with taxes withheld you'll need another item to bring the check amount up to 0.00, such as an earnings item or an addition.

MichelleBh · ‎December 21, 2020

I'll ensure that you'll achieve your goal about withholding in QuickBooks Desktop, @lisainnj.

This isn't the practice that I want you to undergo for our Customer Care Team. Here in QuickBooks, we make great efforts to deliver customer satisfaction at all times. I'll take note of your experience and feedback here on my end. So I can forward this to our higher tier to take action on it.

Yes, I agree with BigRedConsulting that you're unable to create a negative paycheck. That's why QuickBooks didn't process it. With this, I'd suggest adjusting the liability or creating an item or addition as what BigRedConsulting mentioned above.

Here's how:

Go to the Employees menu, then Payroll Taxes and Liabilities, and select Adjust Payroll Liabilities.
Choose either Employee or Company Adjustment in the field.
Complete the Item name, Amount, Wage Base, Memo, etc.
Choose Accounts Affected, then hit OK.
Pick Do not affect accounts to leave balances unchanged for the liability and expense accounts.
Elect Affect liability and expense accounts to enter an adjusting transaction in the liability and expense accounts.
Tap OK.

For the detailed steps, check out this article: Adjust payroll liabilities in QuickBooks Desktop.

I'd still advise you to communicate with an accountant because adjusting payroll liabilities is a little bit tricky. Doing this is to avoid a problem soon.

Additionally, I'd added articles about the various tasks for the incoming tax season and other topics.

Let me know if you have follow-up questions. I'm glad to help.

lisainnj · ‎December 29, 2020

Thank you for the reply. I need to add to the federal income tax liability but not to the income for the employee. This can be done in other payroll systems directly through the paycheck. In QB desktop I needed another solution.

lisainnj · ‎December 29, 2020

Thank you so much. I've spoken with my accountant and this solution will work for me.

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