My customer, as a non-profit, is exempt from paying FUTA. I confirmed this with the company's accountant. Quickbooks was set up originally to accrue Payroll Liabilities due for FUTA. I have made the payroll item inactive but there are still Payroll Liability amounts showing as overdue in the Pay Liabilities window. I also adjusted payroll liabilities for the amount accrued. How do I clear the overdue payments showing?
Additionally, since you already made an adjustment and it shows the due in QBDT. You also need to check if there is an adjustment happened in the ER FUTA tax. For the detailed process, please refer to this link: Adjust payroll liabilities in QuickBooks Desktop.