Thank you for turning to the Community regarding your payroll tax concern, CraftDean.
Keeping your tax liabilities up to date within the system is essential to ensure that your future tax deposits and filings are accurate. Let's use the prior payment method to clear the error message.
When entering tax payments from the prior year, it is advisable to use the backdoor process outside of the Payroll Setup window. I'm here to help ensure the process is a breeze for you:
- In your company file, head to the Help menu at the top and choose About QuickBooks.
- Press Ctrl + Alt + Y or Ctrl + Shift + Y to open the Setup YTD Amounts window.
- Click Next until you reach the Enter prior payments section.
- In the Enter Prior Payments window, tap the Create Payment button to enter all prior payroll tax and non-tax payroll liability payments you've made during the current or previous years.
- Key in the Payment Date and For Period Ending date accordingly. If there is already an item with an amount selected under Taxes and Liabilities, press the Next Payment button (this may be a prior payment that you've entered.)
- In the Taxes and Liabilities field, choose the payroll tax item that you've already paid and want to record in QBDT.
- Enter the amount and add a memo to remind you what the payment is for.
- In the Taxes and Liabilities section, click the Item Name drop-down and choose the payroll items.
- Enter the correct amount and then click the Accounts Affected menu.
- Do not affect accounts: Use this option if your QuickBooks accounts have correct balances. Selecting this option will cause the prior payment to not show up in the bank register.
- Affect liability accounts but not the bank account: Use this option if your checking account has the correct balance. Selecting this option will cause the prior payment to not show up in the bank register.
- Affect liability and bank accounts: Use this option if none of the account balances are correct. Selecting this option will cause the prior payment to show up in the bank register.
- This will show a window where you can pick how you want the payment to affect your chart of accounts.
- Click Next Payment or Finish to complete.
Here's an article that goes over the process in detail: Enter historical tax payments in Desktop payroll. From there, you'll also learn when to use the Payroll Setup window to track liability payments.
You can also utilize the solutions in this article to enter paychecks, tax payments, and non-tax payments you already paid this year: Add payroll info to QuickBooks Desktop Payroll.
In the event you run into any roadblocks updating the tax table or sending your payroll data, these articles will walk you through the troubleshooting steps to resolve them:
Keep in touch if you have additional questions about this matter and other payroll-related concerns. I'm always around to provide the assistance you need, CraftDean. Have a good one.
