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gf21
Level 2

Payroll Liability Adjustment - 401k

Where can I find detailed instructions on how to make a payroll liability adjustment.  We have a 401k credit that I've taken for our employer match due to a terminated employee that was not fully vested in the program.  I need to use that credit in QB to lower our 401k Match liability before I process the payment.

Thanks,

Gina

Solved
Best answer June 18, 2021

Best Answers
Archie_B
QuickBooks Team

Payroll Liability Adjustment - 401k

Hi there, gf21.

 

You've come to the right place. I'd like to help and share what I know about payroll liability adjustments.

 

To start, I suggest you pull up a payroll report to view all outstanding balances that needs to be adjusted such as the Payroll Liability Balances report.

 

Here's how to pull it up:

 

  1. Go to Reports menu.
  2. Choose Employees & Payroll.
  3. Select Payroll Liability Balances.

 

You may also change the date and customize the report by adding the filter by item to show 401k amounts only.

 

Once you've review and figured out the needed adjustment. you can follow the steps on this article to start making adjustments: Adjust payroll liabilities in QuickBooks Desktop.

 

I've also added this link on how to run a report to make sure everything looks right: Payroll Summary Report.

 

Let me know if you still have questions or clarifications about payroll liabilities. I'm always here to help. Enjoy your weekend.

View solution in original post

6 Comments 6
Archie_B
QuickBooks Team

Payroll Liability Adjustment - 401k

Hi there, gf21.

 

You've come to the right place. I'd like to help and share what I know about payroll liability adjustments.

 

To start, I suggest you pull up a payroll report to view all outstanding balances that needs to be adjusted such as the Payroll Liability Balances report.

 

Here's how to pull it up:

 

  1. Go to Reports menu.
  2. Choose Employees & Payroll.
  3. Select Payroll Liability Balances.

 

You may also change the date and customize the report by adding the filter by item to show 401k amounts only.

 

Once you've review and figured out the needed adjustment. you can follow the steps on this article to start making adjustments: Adjust payroll liabilities in QuickBooks Desktop.

 

I've also added this link on how to run a report to make sure everything looks right: Payroll Summary Report.

 

Let me know if you still have questions or clarifications about payroll liabilities. I'm always here to help. Enjoy your weekend.

View solution in original post

gf21
Level 2

Payroll Liability Adjustment - 401k

Thank you, the link for the article Adjust payroll liabilities in QB desktop had the detailed instructions I needed.  I was able to select Affect liability and expense accounts so that it lowered our liability by they forfeiture credit we'd taken for our 401k employee match.

Gina

gf21
Level 2

Payroll Liability Adjustment - 401k

Once the liability adjustment has been and you've selected to Affect liability and expense accounts can you go back & edit the amount?  I need to lower the amount of an adjustment I took 2 weeks ago. Can I just open that up & update the amount & select for it to Affect liability and expense accounts again?

Thanks for the help.

Gina

katherinejoyceO
QuickBooks Team

Payroll Liability Adjustment - 401k

Thanks for following this thread, @gf21. You can delete and recreate the liability adjustment you've made. 

 

Here's how: 

 

  1. Select Payroll, then select Employees.
  2. Select Paycheck list, then pick the paycheck(s) you'd like to delete or void. 
  3. Click Delete.

 

I'd also suggest you consult your accountant for guidance to ensure the accuracy of your payroll reports

 

For future reference, you'll want to track where your company stands in employee expenses. Read and learn about customizing payroll and employee reports.

 

Let me know if you have additional concerns. We always have your back here in the Community. 

 

 

 

 

gf21
Level 2

Payroll Liability Adjustment - 401k

Do you know if the liability adjustment I made earlier this month can just be updated/edited?  I'd prefer not to delete anything.  Also this doesn't pertain to any one paycheck this was a credit from our 401k employee match due to an employee who left & was not fully vested in our 401k.   

Thank you,

Gina

Candice C
QuickBooks Team

Payroll Liability Adjustment - 401k

Good afternoon, @gf21

 

Thanks for reaching back out on this same thread about your issue. Allow me to provide you with some information to help answer your questions about the liability adjustment and credit. 

 

As for changing the liability adjustment, that option isn't available. The reason is because that is a set in stone adjustment. 

 

Moreover, you'll need to talk with your accountant about the credit to be sure. They'll be able to give you the best accounting advice for your business. Here's a link to find one near you if you don't have an accountant: Find export.

 

Let me know if you have any other questions or concerns about your QuickBooks Desktop account. I'm always here to lend a helping hand. Have a great day! 

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