Let's work together to make the necessary adjustments, wendy8.
When discrepancies arise due to taxes taken in error from your employee, using a liability adjustment can fix it.
I agree with you to make an adjustment and make the amount negative. If you're using QBDT Basic, Standard, and Enhanced Payroll, consider running a payroll check-up and a payroll summary report for the month or quarter you need to adjust. Then, you can now adjust your payroll liabilities.
Here's how:
- Go to Employees and click Payroll Taxes and Liabilities.
- Select Adjust Payroll Liabilities.
- In the Date and Effective Date fields, select the affected paycheck date.
- In the Adjustment section, choose Employee Adjustment. This is to correct your employee's YTD info. Next, is to select your employee's name.
- Under the Item Name column, choose the payroll item you want to adjust.
- Enter the Amount of the adjustment as a negative amount to decrease.
- Select Accounts Affected, and click OK.
Select Do not affect accounts to keep balances unchanged for liability and expense accounts.
Select Affect liability and expense accounts if you want the transaction to reflect in the liability and expense accounts.
- Select OK to close the Affect Accounts window.
- Once done, hit OK to save changes.
To check if everything is updated by running a payroll summary report and run a payroll liability balances report to check if the amounts to be paid are correct.
Regarding your second inquiry, I suggest reaching out to our Payroll Support for accurate information.
Just tag my name below if you have follow-up questions about tax adjustments or need more help performing other corrections. I'll get back to you as quickly as possible.
