Payroll tax liabilities

Hello atffcook,

There are different reasons why the payroll liabilities show as overdue. I'm here to help fix the issue.

Before anything else, may I know how you recorded the liabilities? In the meantime, I'll provide one possibility why the liabilities show as overdue.

You may have entered the date on the liability check after the check date. If so, you may follow the steps below to fix the issue.

Here's how:

1. From the Employees menu, select Payroll Center.
2. Go to the Transactions tab.
3. Select Liability Checks.
4. Double-click on the liability check for the period that is appearing in the Scheduled Liabilities window.
5. Modify the check date so it is on or after the paid-through date.

For other reasons why the liabilities are reflected as overdue, you can check this article: Fix overdue or red scheduled liabilities in QuickBooks Desktop. The article also tackles the ways to fix the issue base on how you entered the transactions.

I've also included this link as your guide in filing tax forms and payments: 

• E-file and e-pay federal forms and taxes in QuickBooks Desktop Payroll
• Set up state e-file and e-pay in QuickBooks Desktop Payroll

Don't hesitate to post in the forum if there's anything that I can help with your payroll concerns.

I recorded the liabilities through pay scheduled liabilities. The overdue ones also show partial payments being applied as well. Some from checks from other periods. I’ve checked the dates and that doesn’t seem to be the problem. Do I need to adjust them with the expense process?

Thanks for your response, @atffcook. I'll provide additional insights to help you fix this issue with your payroll liabilities showing as overdue. 

Since you've recorded the liabilities through pay scheduled liabilities, you can use the backdoor process to remove those overdue taxes from your payroll liability screen. To enter historical payments outside the payroll setup window, you can follow the steps below: 

1. Go to the Help menu and click About QuickBooks.
2. Press Ctrl + Alt + Y or Ctrl + Shift + Y to open the Setup YTD Amounts window.
3. Click Next until you reach the Enter prior payments section.
4. From the Enter Prior Payments window, select Create Payment to enter all prior payroll tax and non-tax payroll liability payments you have made during the current or previous years.
5. Enter the Payment Date and For Period Ending date accordingly.
6. In the Taxes and Liabilities field, select the payroll tax item you've already paid and want to record in QuickBooks Desktop. And enter the amount. You can add a memo to remind you what the payment is for.
7. Select the Accounts Affected... button. You can choose the Affect liability accounts but not the bank account so that prior payments won't appear in the bank register.
8. Tick Next Payment. Select Done to save and Finish to close the window.

To learn more about this process, read this article: Enter historical payments in QuickBooks Desktop Payroll.

Also, this guide can give you more tips on resolving overdue or red scheduled liabilities: Fix overdue or red scheduled liabilities in QuickBooks Desktop Payroll.

Please comment below if you have any other questions about managing your payroll liabilities. I'll return here as soon as possible to help you again.

Thank you for the response. I will give that a try. But why are there partial payments applied to the liabilities that are overdue?

Hello there, @atffcook.

A possible reason there are partial payments applied to liabilities overdue inside your QuickBooks Desktop (QBDT) is that there are payroll liability adjustments inside your company. To check if this is the situation you're currently experiencing, you'll want to run the Payroll Liability Balances report. This data will show the outstanding balances for each item in the liability report. Once you've generated the data, drill down each item to determine the accumulation recorded by payroll items on different transactions. I'll write down the steps to get you going:

1. Access your QuickBooks Desktop company.
2. Go to the Reports menu.
3. Select Employees & Payroll and then choose Payroll Liability Balances.
4. Set the date filter to All.
5. Double-click on the amount to view more details on where the balance came from.
6. For Social Security Employee and Medicare Employee, verify the amounts for liability adjustment entry you created by double-clicking it.

Furthermore, here's an article to help you modify and add more details to reports inside QBDT: Customize reports in QuickBooks Desktop.

@atffcook, I'm happy that you've visited the Community space today. You can mention my name in the comment section below if you have any additional QuickBooks-related concerns or need assistance accomplishing goals inside the program. I'll be here, ready to help you out again. Take care, and have a nice day!

I am attempting  to file 2022 NYS-45 and told that QB does not keep more than 1-year of forms.  I am directed here to QB/learn-support....but can not find an answer in any of the help searches, any suggestions?

Welcome to the Community, @jmrmichael.

I've come to share insights and steps to help you record previous payroll tax liabilities.

With QuickBooks Desktop, to accurately record these payroll taxes, we'll need to create prior payments to record these taxes that were paid to the state but need to be showing in QBDT. Let's enter historical tax payments outside the Payroll Setup window for your taxes from the previous years. 

To do that: 

1. Choose About QuickBooks from the Help menu.
2. Press Ctrl + Alt + Y or Ctrl + Shift + Y to open the Setup YTD Amounts window.
3. Select Next until you reach the Enter prior payments section.
4. In the Enter Prior Payments window, select Create Payment to enter all prior payroll tax and non-tax payroll liability payments you have made during the current or previous years.
5. Enter the Payment Date and For Period Ending date accordingly.
6. In the Taxes and Liabilities field, choose the payroll tax item that you've already paid and want to record in QuickBooks Desktop. And enter the amount. You can add a memo to remind you what the payment is for.
7. Select the Accounts Affected... button. This displays options for how you want the payment to affect your Chart of Accounts.
8. After you have completed your first payment, continue to the next by selecting Next Payment. Continue this process until you have completed all payments. Then select Done to save your work.
9. Select Finish to close the window.

Additionally, if you need to record these taxes, including tax payments, you'll want to adjust your payroll liabilities to correct discrepancies on your payroll taxes. First, let's locate any differences by running a payroll check-up or payroll summary report to verify what you've paid in your QuickBooks payroll.

Then, you can follow the steps below to adjust your payroll liabilities.

Here's how:

1. Go to Employees, select Payroll Taxes and Liabilities, then click Adjust Payroll Liabilities.
2. Select the last paycheck date of the affected month or quarter in the Date and Effective Date sections.
3. Select Employee Adjustment in the Adjustment is for: section to correct your employee's YTD information. Then, choose the employee's name. Do this even if the item being adjusted is company-paid.
4. Select the payroll item you want to adjust under the Item Name column.
5. Enter the Amount of the adjustment.
6. Enter the amount under the Income Subject to Tax column if you need to make a wage base adjustment.
7. Enter a note in the Memo field about the adjustment as your reference.
8. Select the Accounts Affected, then click OK.
9. Select OK to close the Affect Accounts window.
10. Select Next Adjustment if you have additional employees to enter an adjustment for. Otherwise, click OK to save the changes.

Moreover, QBDT enables you to view and print previous forms. The procedure to access your tax forms depends on whether you e-file the form or print and file it manually. For detailed steps, please refer to this article: Access payroll tax forms and tax payments.

 
Keep in touch if you need any more assistance with this or if there's something else I can do for you. I've got your back. You have a good one.

KurtKyle_M

I'm still needing assistance with the partial payments and the overdue payroll liabilities.

Hi atffcook,

Hope you're having a good day despite the payroll tax situation on your client's books.

I understand that there are partial payments and overdue liabilities that we need to trace and correct, and my colleagues have already responded. However, we still haven't arrived at a solution. Therefore, it is best to take this to our QB Desktop Payroll Support, so they can do a screen-sharing session to see the records and help with the adjustments. They are available on weekdays from 6 AM to 6 PM PT.

1. Go to Help, then select QuickBooks Desktop Help/Contact Us.
2. Select Contact Us.
3. Give a brief description of your issue and choose Continue.
4. Sign in to your Intuit account, select Continue, and then Continue with my account.
5. We'll email you a single-use code. Enter your code and select Continue.
6. Select to chat with us or Have us call you.

I'm here to assist you again if you have other concerns with payroll. Take care and have a good one.

I have a question: How do I clear payroll liabilities flags when I have paid through the Agencys website? I am located in the Maryland, Washington D C, Virginia area and Usually those agencies require you pay the liability through their website via ACH. How can I clear the flags off QuickBooks desktop? 

THANKS!

Good day, @Joshua71. I'll address your question about clearing your payroll tax liabilities flags in QuickBooks Desktop.

Since you've paid the liability to the agency directly, let's enter the historical tax payments using the Payroll Setup window. Follow the steps below:

1. Access the Payroll Setup Interview.
2. Go to step 5 Year-to-Date Payrolls, then select Continue.
3. Choose Yes if your company has issued paychecks this year, then click Continue.
4. On the next screen, tap Edit on Tax Payments.
5. Print the Tax Payments Checklist, then consult with your accountant before proceeding.
6. Select the arrow next to the quarter you would like to enter tax payments. It will open all taxes owed, where you can enter the payroll tax payments you've made.
7. Pick the next quarter and repeat the process until all tax payments have been entered. 
8. Press Done Entering in Tax Payments.

To enter the tax payments outside the Payroll Setup window, refer to this article: Enter historical tax payments in Desktop payroll.

If the amount shown in QBDT does not match with the one you've settled on the agency, I recommend adjusting payroll liabilities. 

I'm attaching these articles to help you understand tax calculations:

• How QuickBooks calculates payroll taxes 
• Payroll items on a paycheck are not calculating or are calculating incorrectly

Let me know whenever you need extra help managing your business growth and payroll transactions using QuickBooks Desktop (QBDT). I'm always here to help. Take care.