PAYROLL LIABILITIES OVERPAID

jeffspharmacy · ‎June 14, 2022

Hello -

I've got 2 instances of QB Enhanced PR not showing correct amounts on payroll liabilities.

1 - I neglected to change the rate for Maryland, as they (MD) were late in publishing. Resulted in excess amounts due per QB, but when entered on Beacon site, a lower number is reported. I paid the lower number but my MD liabilities think I still owe the first number.

2 - WV -

AbegailS_ · ‎June 17, 2022

Hi there, @ jeffspharmacy.

When your payroll liabilities are incorrect, you can use a liability adjustment to fix them. Let me help you on how to accomplish these steps in QuickBooks.

Go to the Employees menu, then Payroll Taxes and Liabilities, and select Adjust Payroll Liabilities.
Select which adjustment is for.
Select the employee.
Complete the Taxes and Liabilities fields.
- Select the Item Name you want to adjust.
- Enter the Amount of the adjustment. Use a positive number to increase or negative to decrease the amount.
- Wage Base is rarely needed, even when you override a tax amount on a paycheck.
- You only use Income Subject to Tax when making a wage base adjustment.
- You can use the Memo field to enter a note about the adjustment for future reference.
Select Accounts Affected and then OK.
- Select Do not affect accounts to leave balances unchanged for the liability and expense accounts. The adjustment will only change the year-to-date amounts on your payroll reports.
- Select Affect liability and expense accounts to enter an adjusting transaction in the liability and expense accounts.
Click OK. Then OK.

For proper accounting of your books, I'd also suggest consulting an accountant. Refer to this article for more detailed information: Adjust payroll liabilities in QuickBooks Desktop.

If you'd also like to apply the overpayment as a credit, check out this article: Apply your payroll liability overpayment as a credit

For future reference, this article covers all the steps on how to handle overpayment in payroll liabilities: Record a payroll liability refund check.

Please let me know if you have other questions or concerns with payroll taxes. I'll be around for you. Have a wonderful day ahead.

View solution in original post

AbegailS_ · ‎June 17, 2022

Hi there, @ jeffspharmacy.

When your payroll liabilities are incorrect, you can use a liability adjustment to fix them. Let me help you on how to accomplish these steps in QuickBooks.

Go to the Employees menu, then Payroll Taxes and Liabilities, and select Adjust Payroll Liabilities.
Select which adjustment is for.
Select the employee.
Complete the Taxes and Liabilities fields.
- Select the Item Name you want to adjust.
- Enter the Amount of the adjustment. Use a positive number to increase or negative to decrease the amount.
- Wage Base is rarely needed, even when you override a tax amount on a paycheck.
- You only use Income Subject to Tax when making a wage base adjustment.
- You can use the Memo field to enter a note about the adjustment for future reference.
Select Accounts Affected and then OK.
- Select Do not affect accounts to leave balances unchanged for the liability and expense accounts. The adjustment will only change the year-to-date amounts on your payroll reports.
- Select Affect liability and expense accounts to enter an adjusting transaction in the liability and expense accounts.
Click OK. Then OK.

For proper accounting of your books, I'd also suggest consulting an accountant. Refer to this article for more detailed information: Adjust payroll liabilities in QuickBooks Desktop.

If you'd also like to apply the overpayment as a credit, check out this article: Apply your payroll liability overpayment as a credit

For future reference, this article covers all the steps on how to handle overpayment in payroll liabilities: Record a payroll liability refund check.

Please let me know if you have other questions or concerns with payroll taxes. I'll be around for you. Have a wonderful day ahead.

jeffspharmacy · ‎June 17, 2022

Perfect!

Thanks much.

Rea_M · ‎June 17, 2022

You're always welcome, @jeffspharmacy.

We appreciate you for letting us know how the steps went. We couldn't do it without your cooperation.

I'm glad that we're able to provide you with a resolution to fix your overpaid payroll liabilities issue. If there's anything else you need, please feel free to post here anytime.

Thanks for being the best part of QuickBooks, and have a lovely day!

SunFlower1013 · ‎April 17, 2024

Why does this adjustment not update the 941 quarterly return? It's still showing an overpayment after the adjustment made.

AlverMarkT · ‎April 17, 2024

I appreciate you for joining the thread, @SunFlower1013.

Sometimes the adjustment date and the target liabilities entered can affect how the 941 return is updated. I can share a couple of things we can review to resolve the adjustment not updating on your 941 quarterly return in QuickBooks Desktop (QBDT).

The first thing we can check is the timing of the adjustment. You can review the adjustment of the overpaid tax liability and ensure that the date period aligns with the 941 quarterly return. Next is we can verify if the adjustment was applied correctly to the specific tax liability component since QBDT also requires that adjustments are applied to target liabilities. You can follow these steps:

In your QBDT, go to the Employees menu.
Select Payroll Center.
From the Pay Liabilities tab, select the Federal 941 at issue and click on the amount.
Double-click on the Liability Adjust from the Payroll Item column. This opens again the Adjust Payroll Liabilities window.
Ensure that the last paycheck date of the quarter is selected in the Date and Effective Date fields.
Review the payroll liability items from the Item Name column.
Click on OK when done.

For future reference, let me add this article as a guide in running, customizing, and printing payroll reports in QBDT: Run payroll reports.

We'll be here if you have further updates on the 941 tax return not reflecting the payroll liability adjustments in QBDT. We'll do our best to assist.

Mary Richard · ‎October 14, 2024

I corrected the payroll liabilities using the adjustment protocol indicated. Now, the employee is underpaid. I went back to the original paychecks and the withholding for SUI is still the original amount that was an overpayment. How do I pay the employee the amount owed to them without causing errors in QB balances?

MelroseV · ‎October 14, 2024

It will automatically pay your employee for the next paycheck for the underpayment, mary. Allow me to discuss this one below.

Since you have already adjusted your payroll liabilities, it will automatically pay your employee for the next payroll period.

Additionally, you might want to notify your employee that their next paycheck will have a substantial deduction due to an input error, setting their rate lower than the mandated amount.

For future reference, you can these resources with a deeper insight into your business finances using QBDT:

Keep this thread handy for future questions or concerns about your payroll in QuickBooks Desktop. My team and I are here to ensure you feel supported and confident in managing your finances. We look forward to assisting you.

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PAYROLL LIABILITIES OVERPAID