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heazim1
Level 3

Payroll liability adjustment due to rounding

how do I get the .01$ EE side out of payroll liability window?  The .01 is due to rounding.  I can't assign to an employee.  Thanks.

6 Comments 6
BigRedConsulting
Community Champion

Payroll liability adjustment due to rounding

Enter a payroll liability adjustment with no employee name attached.

heazim1
Level 3

Payroll liability adjustment due to rounding

It says you must enter an employee name. 

Rasa-LilaM
QuickBooks Team

Payroll liability adjustment due to rounding

Thanks for visiting the Community today, heazim1.


I also want to ensure you can remove the $.01 amount in the Payroll Liability window. Allow me to provide options to clear it in your company file.

 

In addition to @BigRedConsulting answer, you can either enter a prior payment or create the liability adjustment. The latter method will clear out the payroll liability and reduce the tax owed.

 

However, the total tax amount shown on the Payroll Summary Report won’t change. It also has the same effect if you’ll create a company adjustment. Perform an employee adjustment if you want the changes to reflect on the Payroll Summary and Payroll Liability Balances Reports.


To input the prior payment:

 

  1. Go to the Help menu at the top to select About QuickBooks.
  2. On your keyboard, press Ctrl + Alt + Y to open the Setup YTD Amounts window.
  3. Select Next until you reach the Enter prior payments window.
  4. Then, click Create Payment to open the Prior Payments of Taxes and Liabilities screen.
  5. Input the appropriate Payment Date and For Period Ending date.
  6. Press the Item Name drop-down under the Taxes and Liabilities section to select the payroll tax item you're working on and then enter the amount. 
  7. Tap the Accounts Affected button to choose Do not affect accounts. This option will not affect your balances or show up in the bank register.
  8. Click OK and Done.
  9. Press Yes to confirm the changes.
  10. Hit Finish to close the window.

dt prior payment.png

For more insights about the process, check out the Enter historical tax payments in QuickBooks Desktop Payroll guide. From there, you’ll find instructions on how to record the transaction using the Payroll Setup window.

 

If you need further assistance removing the liability amount, leave a comment below. I'm more than happy to help and make sure this is taken care of for you. Enjoy the rest of the week.

 

BigRedConsulting
Community Champion

Payroll liability adjustment due to rounding

I don't know why it says that.  It doesn't for me.

jprushing
Level 1

Payroll liability adjustment due to rounding

Is this process the same with rounding differences from a prior year? I have two from a prior year for NC Unemployment and one for this year for Federal 940. I entered a liability adjustment for federal withholding of -2 cents but the balance of 2 cents is still showing due? How do I fix this?

RenjolynC
QuickBooks Team

Payroll liability adjustment due to rounding

Thanks for joining in on this thread, jprushing.

 

Let's make sure to review the date of the entered adjustment and select the correct affected liability account. These might be the reason why you have a balance due. 

 

You can read these articles for for more details:

 

If the information is accurate, I recommend contacting our Payroll Support Team. They can review your account and the adjustment recorded.

 

Here's how:

 

  1. In your QuickBooks Desktop program, go to Help QuickBooks Desktop Help.
  2. In the Have a Question window, click the Contact Us link at the bottom.
  3. From the Contact Us page, select any topics.
  4. Under Here's how to connect with a QuickBooks expert section, click the Start a Message or Get Phone Number button.

I'm always around if you need more help with your QuickBooks Desktop account. Take care and stay safe!

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