Was in a rush and I opted out of a payroll update yesterday when running payroll. Just realized that because of this Quickbooks did not make any deductions for taxes from my employees checks. Checks have already been distributed to employees and most have been deposited or cashed. How can I correct this mess? I need to find out how I can reprint/edit checks so that taxes are correct and somehow recoup the amounts from my employees who didn't pay any taxes this week.
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This same thing happened to me with payroll because the payroll tax tables hadn't updated. I didn't realize it until after everyone had cashed their checks. I was planing on some of the suggestions on this page and rerunning payroll. After updating the tax tables I ran the next weeks payroll and QuickBooks automatically deducted the correct amount of taxes for both weeks. Hope this helps, it saved me a ton of time.
Just wait until you go to do payroll NEXT WEEK! QuickBooks' latest maintenance release created a NIGHTMARE. FOUR clients called me today with the same issue - no payroll taxes withheld. They downloaded updated and then it took out the taxes and after digging deeper, we realized it took DOUBLE SS and MED!!!!!!!!! Some employees are so over-withheld that we're going to have to issue refund checks to them because they are going on seasonal layoff. The fix for now is to uninstall and reinstall Quickbooks and NOT install the patch (release 9). Thank heaven I have an earlier download that doesn't have that awful patch in it! I have advised all clients to WAIT until they hear from me to install this update, with the hope that QB will fix the thing!
So this happened to me as well. Unfortunately it was on the final 2018 paychecks. So I've got understated taxes for 2018 - causing issues trying to run my 941. If I correct it, then I'll have overstated taxes for 2019. Any suggestions?
Hi there, @Anonymous.
Thank you for joining this thread. I can help you correct the taxes for the final 2018 paychecks.
If the tax table is outdated, this can cause calculation errors on your employees' paycheck. To resolve this, let's run the payroll tax table update:
Since you've already issued the paychecks, you will have to void and re-create them to show the right taxes. This will automatically update your taxes and form amounts. Any difference in net amount can be adjusted on the next payroll.
For in-depth information, please refer to this article: QuickBooks Desktop calculates wages and/or payroll taxes incorrectly.
That should correct the paychecks and the forms in your QuickBooks, Martha.
Let me know if you have follow up questions about payroll. I'm always here for you. Wishing you all the best!
Thanks for getting back, Martha.
Allow me to step in and help you some more.
To correct the difference in the net amount, you can create an addition or deduction item that is non-taxable and apply it on your next payroll. These items won't be added to the employee's taxable earnings.
Here's how to set up an addition payroll item:
Here's how to set up a deduction payroll item:
For the detailed steps and additional information, you can go through this article: Create a non-taxable reimbursement payroll item in QuickBooks Desktop Payroll.
Please don't hesitate to reach back to me if you have other payroll questions. I'd be delighted to answer them for you.
John regarding your reply on the corrections, how do you compensate for the fact that when you try to reconcile the bank account, the checks that were cashed (the incorrect checks with no taxes withheld) are going to show a different amount with the bank than the corrections in quickbooks. I understand the explaination on how to correct the payroll issue but not how it will reflect later for reconciliations.
My colleague @JonpriL has answered your post which I believe is a duplicate post. Here's the link: https://quickbooks.intuit.com/learn-support/en-us/employees-and-payroll/re-payroll-taxes-not-deducte....
You'll want to check his answer to know how your payroll correction reflects your reconciliation.
I've also added our page about payroll and workers if you need some help articles for your future tasks.
Please know that we're always here if you need help with anything else.
Thanks for joining the thread, @JohnsonsBoucaniere.
You can follow the suggestions given by @john-pero to correct these payroll taxes and checks in QuickBooks Desktop (QBDT).
However, before voiding your paychecks, ensure you've already issued so it won't affect the next payroll. Here's how:
Please refer to this article for more details about voiding paychecks: Void Paycheck.
We can create a deduction item to correct the difference in the net payroll amount. Follow Charies_M for the steps how.
Also, before recreating the paychecks, ensure your tax table is updated. This way, we can prevent calculation errors: Update payroll tax table.
I'll be adding this article to gain more insights on how to correct wages and payroll taxes in QBDT: Correct Payroll and employee wages.
I'm just around in the Community if you need more help with managing your payroll taxes or other QuickBooks-related concerns. I'd be glad to help you some more. Take care and stay safe.
Hello there, @JohnsonsBoucaniere!
Yes, you're on the right track. The first set of steps should be an addition since the instruction says to create a new addition item.
Lastly, I've got you these helpful articles for ideas to help manage your payroll account and related tasks: Help Articles for QuickBooks Desktop Payroll.
If there's anything else that I can help you with, let me know in the comments. I'll be happy to help.
Hi there, @finishpropaintingllc.
Thanks for following the thread and sharing your concerns. I hope you're enjoying the day so far.
When it comes to taxes and deductions, there can be a few reasons why they aren't deducted from paychecks. Such as:
First, you'll want to make sure that your Payroll Tax Table is up-to-date. Then, you'll need to review the employee's tax setup since this is how QuickBooks determines the calculation.
After you've run payroll updates, it's time to revert your employee's paycheck. By reverting the paycheck, this will refresh your payroll information to calculate the taxes on the transaction. I've included some steps to revert paychecks below.
Feel free to take a look at the articles I've included for further details and additional troubleshooting steps.
Drop a Reply below if you have any questions or concerns. I'll be here every step of the way. As always, reach out to the Community any time you need assistance. Have a wonderful day ahead!