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Level 1

QB Desktop Enhanced Payroll - paycheck error

Am trying to correct the following situation:

 

December 30 2019 paycheck was outstanding at the end of 2019.  Company changed to QB Desktop - but didn't enter beginning year information from the end of 2019. (That is another item I need to fix).  When the outstanding December 30, 2019 check cleared the bank account it was recorded as a paycheck in QB Desktop.  This information on this check appears in the employees totals for 2020 and the taxes were paid again by the company in 2020.  

 

How should this check entry be adjusted in QB Desktop Payroll to reflect the correct total balances for the employee?  What date should be used? 

    When I try to pull up the Paycheck Detail the following warning pops up:

          QuickBooks does not have the information required to compute amounts for paychecks

          dated 2/3/2020.  If you create or edit paychecks you will need to verify and correct all

          amounts manually.

The 2019 outstanding check cleared in 2/3/2020 thus the date.  Don't believe the manually amounts will be an issue as that information is available.  

 

Since the Q1 2020 payroll taxes were filed will also need to prepare 931-X nd corresponding state tax filings.  Will preparing these in QB Desktop Payroll follow through and reflect the credit in payroll liabilities? Will this credit appear on the next 941 filed?

 

Appreciate your assistance. 

 

3 Comments
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QuickBooks Team

QB Desktop Enhanced Payroll - paycheck error

I can help you enter historical payroll data and correct your employee's information, @PITA2.

 

You can go to the Employees menu and then Payroll Setup to access the Payroll setup wizard. Proceed to the Year-to-date payrolls to enter all of your year-to-date payroll history and tax payments starting in January. Check this article for more information: Enter historical payroll data.

 

Also, you can use liability adjustment to correct employees’ year-to-date (YTD) or quarter-to-date (QTD) payroll info. 


Here’s how to adjust your payroll liabilities: 

 

  1. Click the Employees menu, then Payroll Taxes and Liabilities, and select Adjust Payroll Liabilities.
  2. Set the same date as the last paycheck of the affected quarter. That'll be used to calculate amounts on your 940 and 941 forms as well as the Payroll Liability Balances Report.
  3. Click the employee's name.
  4. Complete the Taxes and Liabilities fields.
  5. Choose Accounts Affected and then click OK. 

See this adjust payroll liabilities in QuickBooks Desktop article for your reference. 

 

From here, you can run a payroll summary report to see info by each employee and their totals. 

 

For additional concerns about your employee and payroll, let me know in the Reply section below. Keep safe and have a wonderful day!

Highlighted
Level 1

QB Desktop Enhanced Payroll - paycheck error

Thanks for your assistance.  Before I proceed want to clarify that entering the adjustments indicated in Adjust Payroll Liabilities will also adjust the Gross Wages for the employee.  The listing of the Accounts Affected does not include gross wages.  If the adjustment is done for Employee there is a column for Wage Base associated with the Item Name, i.e. Federal Withholding.  Will QB Desktop Payroll use this information to remove the Wage Base from the employee total?  If not, how can this be done.  The employee has and will continue to receive paychecks but their Gross Wage associated with the December 2019 check needs to be excluded from their total and the total for the company.

 

Also will QB Desktop Payroll allow the employer liabilities to be entered under an Adjustment for Employee.  For example there appears to be an option for selecting Medicare Company under an Employee Adjustment.  Will this be reflected in QB or will there have to be two adjustments - one for the Company and then one for Employee?

 

Thanks again.

Highlighted
QuickBooks Team

QB Desktop Enhanced Payroll - paycheck error

Hey there, @PITA2

 

Thanks for reaching back out to the Community. Allow me to give you some insight into your questions about your employee's outstanding paycheck from 2019 that was cleared on 2/3/2020. 

 

First, applying the adjustments to the liabilities will affect the gross wages unless you only adjust the employer paid portion. In addition, since the paycheck was cleared after 1/1.2020, the amount will be counted as 2020 income. However, you can correct this by changing the date to 12/31/2020. Note: Before doing this. I recommend consulting with an accountant. They'll be able to give you the best accounting advice to ensure that your payroll taxes are right. If you don't have an accountant, you can cruise on over to this link to find one near you. 

 

In the end, the individual adjustments for the company paid and employee paid will be separate. Here's an article to help you and your business with the adjustments: Adjust payroll liabilities

 

For future reference, this is a link that can provide you with some details about NSF bank returns

 

After reviewing these details, you should be able to get back to running your business. If you have any other questions or concerns, feel free to ask. I'm always here to lend a helping hand. Wishing you the best!

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