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Paakaa10
Level 1

QuickBooks Enhanced Payroll: Incorrect Balance Populated to Pay Liabilities Tab

Hello,

 

We use QuickBooks Desktop Pro 2019 with QuickBooks Enhanced Payroll. I just ran our quarterly Unemployment Insurance - Quarterly Contribution Report Worksheet for our state and the form automatically generated by QuickBooks showed a contribution due of $102.63 based on our wages and contribution rate.

 

This amount was validated as correct on our state website when I submitted the form data and was given on the payment page to make that contribution.

 

However, the Pay Liabilities tab of our Payroll Center in QuickBooks Desktop rounded up to $102.64, so now I show a $0.01 balance for this liability which is incorrect.

 

What is the best way to clear out this incorrect liability balance amount?

 

Thank you!

Solved
Best answer April 15, 2021

Best Answers
JenoP
QuickBooks Team

QuickBooks Enhanced Payroll: Incorrect Balance Populated to Pay Liabilities Tab

I'll help you clear out the liability in your Payroll Center, Paakaa10.

 

You can create a prior payment entry to remove the remaining balance for state unemployment. Here's how:

 

  1. Go to the Help menu, then select About QuickBooks.
  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. Click Create Payment.
  5. Change the Payment Date and For Period Ending date to the end of the quarter. 
  6. Go to the Item Name column and look for the state unemployment company.
  7. Enter .01 in the Amount column, then add a Memo if you want to.
  8. Click Accounts Affected and select Affect liability accounts but not the bank account.
  9. Select OK

 

Once done, go back to the Payroll Center to check if the amount is no longer there. Here's an article about this feature for more details: Enter Historical Tax Payments in Desktop payroll.

 

Alternatively, you can also record a negative payroll liability adjustment to clear it out. Follow the steps in this article for guidance: Adjust Payroll Liabilities in QuickBooks Desktop

 

You'll also want to check out this article on how to see all the remaining balances you have in QuickBooks: Run Payroll Liability Balances Report

 

As always, please don't hesitate to reach out to us again or reply to me if you need anything else. 

View solution in original post

4 Comments 4
JenoP
QuickBooks Team

QuickBooks Enhanced Payroll: Incorrect Balance Populated to Pay Liabilities Tab

I'll help you clear out the liability in your Payroll Center, Paakaa10.

 

You can create a prior payment entry to remove the remaining balance for state unemployment. Here's how:

 

  1. Go to the Help menu, then select About QuickBooks.
  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. Click Create Payment.
  5. Change the Payment Date and For Period Ending date to the end of the quarter. 
  6. Go to the Item Name column and look for the state unemployment company.
  7. Enter .01 in the Amount column, then add a Memo if you want to.
  8. Click Accounts Affected and select Affect liability accounts but not the bank account.
  9. Select OK

 

Once done, go back to the Payroll Center to check if the amount is no longer there. Here's an article about this feature for more details: Enter Historical Tax Payments in Desktop payroll.

 

Alternatively, you can also record a negative payroll liability adjustment to clear it out. Follow the steps in this article for guidance: Adjust Payroll Liabilities in QuickBooks Desktop

 

You'll also want to check out this article on how to see all the remaining balances you have in QuickBooks: Run Payroll Liability Balances Report

 

As always, please don't hesitate to reach out to us again or reply to me if you need anything else. 

View solution in original post

Paakaa10
Level 1

QuickBooks Enhanced Payroll: Incorrect Balance Populated to Pay Liabilities Tab

That did the trick; thank you for your help!

frr
Level 1

QuickBooks Enhanced Payroll: Incorrect Balance Populated to Pay Liabilities Tab

I tried this solution for a similar issue but it didn't work in my situation.  If you have other suggestions, please help.  My payments and liabilities screen shows a payment due for IRS withholding, SSI & Med EE and ER.  The issue is in custom liability payments I have zero due.  When I 'pay' the scheduled liability the n a credit shows up in custom payments??  I reconciled the whole year (2020) to the W3 and verified all my payments with IRS and I owe zero.  I can't figure it out.  One would think both  custom screen and scheduled screen should have the same balances.

 

LeizylM
QuickBooks Team

QuickBooks Enhanced Payroll: Incorrect Balance Populated to Pay Liabilities Tab

Hello, frr. 

 

I appreciate your efforts in trying out the given solution above. I'm here to ensure you'll get your payroll corrected so you can get back on track.

 

Checking the correct liability in QuickBooks Desktop Payroll would depend on the date entered in the custom liability check. Let's make sure that the liabilities are accrued on the date the paycheck is issued, not on the pay period of the check. 

 

If the custom date is the same as the paychecks on the liability account, the balance should show the same.

 

If you create a prior payment, you can follow the steps provided by the colleague above. Then adjust the correct amount on the liability adjustments. This will correct the employee's year-to-date (YTD) information to ensure your forms are correct. 

 

 

Here’s how to adjust payroll liability:

 

  1. Go Employees at the top and choose Payroll Taxes and Liabilities.
  2. Select Adjust Payroll Liability.
  3. Set the right dates and select the Employee radio button.
  4. Under the ITEM NAME column, select the tax item you’re working with.
  5. Put the negative form of the excess amount under the AMOUNT column.
  6. Click OK.

 

This article can guide you through the process if you'll want to enter a prior payment history event: Enter historical tax payments in Desktop payroll.

 

I'm also attaching this link here in case you need help in filing your tax forms: Set up your Federal Forms 940, 941, and 944 for e-file in QuickBooks Desktop.

 

Keep me posted on how everything turns out by commenting below. I'll be around until you're able to see your payroll liabilities.

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