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pg8
Established Member

make corrections to employees year to date socail security and medicare

What is the best way to correct employees YTD medicare and social security withholding.  For 2 months they were overwitheld because of an error in the set up of 125 insurance premiums.

 

Also, can you turn the payroll auto correct feature off

1 Comment
QuickBooks Team

Re: make corrections to employees year to date socail security and medicare

It's nice to have you today, @pg8,

 

I can help you correct your employees year-to-date information so you can get back on track.

 

Let's pull up a Payroll Detail Review report to verify the taxes withheld and the difference. Here's how:

  1. Go to the Reports menu.
  2. Select Employees & Payroll.
  3. Choose Payroll Detail Review.
  4. Click Customize Report tab (if you want to run a specific report).
  5. Choose the Display tab and select the date range from drop down list or fill in the From and To dates.
  6. In the Filters tab, choose Payroll Item from the Filter section. Select Multiple payroll items in the Payroll Item drop-down.
  7. In the Select Payroll Item window, mark Federal WithholdingMedicare CompanyMedicare EmployeeSocial Security CompanySocial Security Employee and Medicare Employee Addl Tax.
  8. Once done, click OK twice.

You can get the correct calculation by multiplying the total wage base for each payroll item by the corresponding tax rate.

 

You can rectify any discrepancy by creating a liability adjustment. Here's how:

 

  1. Choose Employees.
  2. Select Payroll Taxes and Liabilities.
  3. Choose Adjust Payroll Liabilities.
  4. Select the correct Effective Date. It should be the same date as the last paycheck of the affected quarter or today's date if doing an adjustment that affects current quarter only.
  5. Select the Employee radio button if the adjustment affects the employee's YTD and Company if the adjustment is a company contribution.
  6. In the Taxes and Liabilities section, click the Payroll Item column and select the correct payroll item to adjust.
  7. Click Accounts Affected, choose Do not affect accounts or Affect liability and expense accounts.
  8. Click OK.

I've included here an article to help you complete the correction process:

 

Adjust payroll liabilities

Correct year-to-date (YTD) when the wrong tracking type was used.

 

Regarding your second question, we're currently unable to stop the auto-correction feature in Quickbooks. It is a built-in feature to make sure the system is on top of your tax processing.

 

That should do it. Please let me know if you have any questions with the steps. I'll be more than happy to help you anytime. All the best!