Inaccurate display of the Medicare Tax (payroll tax) in the liability account

Hi there, @mchie1013.

Someone who has an access to your company file might accidentally create these entries. This can be the reason why your liability account balance shows an incorrect amount. 

To check, you can run the Audit Trail report to see who made these transactions and isolate the issue. Here's how:
 

1. Click Reports at the top menu bar and choose Account & Taxes.
2. Select Audit Trail.
3. On the report screen, click Customize Report.
4. Go to the Filter tab and search for Transaction type.
5. Check who created the entry.

Once verified, you can double-click the transaction to open. Then, press CTRL+D if you want to delete it and click Yes to confirm. 

Additionally, you can go through these articles to help guide you in customizing a payroll report in QuickBooks as well as searching related articles for your future task:

• Customize reports in QuickBooks Desktop
• Help articles

If there's anything else you need, please let me know. I'd be more than willing to lend you a hand. Have a great day ahead.

Thank you for your response @ReymondO. This is not the case because we are a small company with two employees and I'm the only one that uses the company Quickbook file. When I review the payroll transaction detail report the entry (in error) takes me to the paycheck window. There I see only one entry for the employee deduction and another listed in the company summary. No duplicates.

Hello, mchie1013.

I'm here to help fix the discrepancies on your liability account.

Let's ensure that your QuickBooks software is up-to-date to the latest release. Keeping it updated guarantees you'll have the latest features and fixes. Also, you can run the verify and rebuild tool to make sure that your company file is free from any possible data damage. I'll show you how.

1. Go to the File menu, then hover over to Utilities.
2. Select Rebuild Data.
3. Click OK on the QuickBooks Information window, then follow the onscreen instruction to save a backup.
4. It may take some time to repair your file. When the tool finishes, hit OK.
5. Go back to the File menu. From the Utilities, select Verify Data.
6. Let the tool check your file for data issues, if it doesn't find any problem, click OK.

You can refer to this article for more detailed information: Verify and Rebuild Data in QuickBooks Desktop.

In addition, you can review this material for more insights: Adjust payroll liabilities in QuickBooks Desktop. Here you can find the steps to fix incorrect liability balances.

You can post a reply if you have further concerns with managing your payroll tax. I'll be glad to help you again. Wishing you and your business continued success.

@Giovann_G Tried these suggestions but nothing changed. I still have a employee Medicare tax credited to the employee liability account and a Employer Medicare tax debited to the employee liability account. The result -  the two Medicare tax items are cancelling each other out.  Oddly, there is no Medicare tax entry in the company liability account even though it is set up this way in the payroll item list. 

I appreciate you taking the steps provided by my colleagues above and by getting back to this thread, @mchie1013.

As much as I would love to look into this further, we have limited tools here in the Community. That being said, let me route you to the right support to help you check why the Medicare Tax shows inaccurately. They have advanced tools to have a remote session with you to verify your payroll set up and find a fix. 

To reach them, here's how:

1. Open your QuickBooks file.
2. Go to Help, then choose QuickBooks Desktop Help.
   
   
3. Click Contact Us.
   
   
4. Enter your concern, then select Continue.
5. Select Start messaging or Get a callback from an expert.

You can also view this resource for your reference: Contact Payroll Support. It also covers our support hours and types.

In addition, I've attached an article you can review about the Additional Medicare Tax: FAQ QuickBooks Desktop Payroll: Additional Medicare Tax.

Get in touch if you need more help with QuickBooks payroll, or if there’s something else I can do for you. I've got your back. Stay safe there.

Just curious, did you ever get a solution to this?  I'm experiencing the same problem. 

Nice to have you joined this thread, @ksm1314.

I'll make sure you'll be able to view your Medicare Tax accurately in your liability account. 

Just to make sure we're on the same page, were you able to perform the troubleshooting steps shared by my colleagues above? If not, I recommend doing so to fix this issue.

If you have and the issue remains, I propose updating your QuickBooks Desktop (QBDT) and payroll tax table to the latest release. This way, we can guarantee all components are up to date and will calculate correctly. I'll show you how:

1. Go to the Help menu and select Update QuickBooks Desktop.
2. Click the Update Now tab. 
3. Select Get Updates to start the download.
4. Restart QuickBooks when the download finishes.
5. Then accept the option to install the new release when prompted.

You can also utilize this link for more details: Update QuickBooks Desktop to the latest release.

Then to update your payroll tax table, please refer to this article for guidance: Get the latest payroll tax table update.

Once everything is all set, feel free to check out these links for reference in supervising your payroll:
 

• Learn about QuickBooks Desktop Payroll with how-to videos
• E-file 940, 941, and 944 tax forms

I'll be here to help you anytime with your payroll tax. If you need further assistance with it, you can always add it in your reply. Keep safe.

I’m having the same issue. Did this ever get resolved?