Paying unemployment tax online - deducted from credit
We have to pay state unemployment tax online starting this quarter. I didn't realize we had a credit in our account. Program deducted payment from the credit not giving me a choice to pay. I have requested the remaining credit funds be sent to me in a check. How do I record the payment of the 1st Qtr taxes by the credit? Using Desktop Pro 2018.
Welcome and thanks for joining our forums. I can share some insights on how to correct your taxes in QuickBooks Desktop.
Before anything else, may I know if the overpayment happened in the 1st quarter of this year? When do you usually deposit your payment? Also, may I know if you already reported your 941 Form to the IRS? Any information you can add is extremely helpful for us to narrow things down.
QuickBooks has an automatic feature to apply an overpayment to the next period. Since you opt to get a check for the credit, we can adjust the overpaid period to make sure you can pay the correct amount due for your taxes.
To check for any discrepancies or overpayments, we can use the Payroll Detail Review report to verify the taxes withheld and the difference. Here's how:
Go to the Reports menu.
Select Employees & Payroll.
Choose Payroll Detail Review.
Click Customize Report tab (if you want to run a specific report).
Choose the Displaytab and select the date range from drop down list or fill in the From and To dates.
In the Filters tab, choose Payroll Item from the Filter section. Select Multiple payroll items in the Payroll Item drop-down. (See screenshot.)
Select which taxes you overpaid.
Once done, click OK twice.
On the report, review if the checks have the correct deductions. You can get the correct calculation by multiplying the total wage base of each payroll items to its corresponding tax rate. If the figures are correct, then there is no action to be taken next. However, if QuickBooks overwithheld the taxes, you can offset the overpayment by creating a liability adjustment.