i already did the update payroll

I have a cash advance payroll item. The type is "advance" and tax tracking is "none". Is this okay to use?

I'd be glad to address your concern about managing advance payment in QuickBooks Desktop (QBDT), tdferrari.

Before doing so, can you tell me more about the cash advance payroll item you mentioned in your post? Any additional details such as screenshot would help me provide an accurate resolution to address your concern.

If you're looking for a way to adjust your employee's payroll liability, you can refer to this article: Adjust payroll liabilities in QuickBooks Desktop Payroll.

We look forward to hearing back from you. Please keep in mind that we're always here to assist you with any questions or concerns you may have.

I'm not sure I need to do this. Quickbooks didn't take out employee taxes on 10/10 and I didn't notice until the next payroll. I called and they had me do a direct deposit offset because the individual employees checks didn't show up. I don't know if I need to do anything or will Quickbooks take out those taxes and the current taxes due on next week's paycheck?

I got you covered, tdferrari. Navigating the complexities of payroll taxes can sometimes be challenging, and I'm here to ensure you have all the information you need. 

The direct deposit offset payroll item you created was for the missing paychecks. Creating an offsetting item will zero out the net pay of the individual paychecks since there will be a corresponding direct deposit liability check in your bank register. This approach keeps your payroll records accurate and ensures your financial registers remain balanced.

Regarding your concern about payroll taxes not being deducted in the previous pay period, please note that QuickBooks has an auto-correct feature, which means the program will automatically correct such discrepancies in the next pay period. However, for federal and state withholding taxes, you'll have to manually adjust the amount to double it when processing your next payroll. In this situation, inform your employees that the next paycheck will have increased tax deductions to compensate for the missed deductions in the last pay period.

Finally, you'll also have to update your tax table to ensure accurate payroll tax calculations. 



My team and I, value open communication and want to ensure you fully understand your payroll and tax situation, tdferrari. If you have additional questions or concerns regarding payroll tax management, comment below. Our team is here to provide clarification on any aspects of the process, including tax withholdings, adjustments, or general payroll practices. I'm committed to addressing your concerns and providing the information you need to feel confident about your payroll tax management.

I said that I recorded a direct deposit offset as requested on the phone with Intuit, but I only did that so the paychecks would show up in the individual employees. I noticed it said net paycheck was zero so I went in and deleted the direct deposit offset. Should I not have done that? My thumb drive went bad and I lost everything from 9/20 to 10/9 so I had to go in and recreate everything. Payroll quarterly tax forms, tax payments and payroll.

Hi there, @tdferrari.

Thank you for reaching out to the QuickBooks Community. It sounds like you've had a challenging time with data loss and recreating payroll records. Let's address your concerns regarding the direct deposit offset and ensure your payroll records are correctly set up in QuickBooks Desktop (QBDT).

The Direct Deposit Offset account is a temporary holding account used to manage direct deposit transactions before they are settled in your bank account. Deleting the direct deposit offset entry could affect the accuracy of your payroll records and bank reconciliation.

For personalized assistance and to ensure all payroll records and transactions are correctly set up, it’s a good idea to contact QuickBooks Desktop Support.

Given the data loss you experienced, it’s crucial to back up your QuickBooks data regularly to avoid future issues. 

By following these steps, you should be able to verify and correct your payroll records and ensure everything is accurately recorded in QuickBooks Desktop. If you have any further questions or need additional assistance, please don’t hesitate to reach out again. We're here to help ensure your QuickBooks experience is as smooth and accurate as possible.

Okay, so I went back in and put the direct deposit offset back in there. The previous person that assisted me said to double the federal and state withholding taxes on the next paycheck. One employee is no longer with us and the other I checked "2020 and later" under the w-4 and it looks like there have not been any federal withholding taxes taken out of her paycheck. Me and the owner are salaried so that is easy enough to double. What should I do?

Okay, I went back in and added the direct deposit offset. The previous that helped me said to double the federal and state withholding taxes but one employee is no longer employed and the other I check "2020 and later" under w-4 form and it looks like it's not withholding any federal taxes from her. Me and the owner are salaried so that's easy enough. What should I do?

Thank you for rejoining this conversation, Tdferrari. I’m here to assist you in addressing the payroll tax concerns you’re experiencing with your employees whose taxes are not being withheld. This is a crucial matter, and it's important to ensure compliance and accuracy in processing them. 

First, review your employees' profiles, including the inactive ones, and verify if taxes have been set up accurately. Here's how:
 

1. Go to Employees and pick Employee Center.
   
   
   
   
2. Select the employee's name.
   
   
   
   
3. Tap the pencil icon beside Employee Information.
4. Press Payroll Info, then Taxes.
   
   
   
   
5. Click the Federal and State tabs to verify details.
   
   
   
   
6. Ensure both their Filing status are not set to Don't withhold.
    

For more information, check out this article: Troubleshoot no income tax withheld from a paycheck.
 

If everything is set up correctly and the issue persists, I recommend contacting our Payroll Support Team during their support hours. They can provide specialized guidance on managing tax withholdings for both active and inactive employees. Please refer to the steps below:

1. Open QuickBooks.
2. Go to Help, then pick QuickBooks Desktop Help/Contact Us.
3. Hit Contact Us.
4. Give a brief description of your issue and press Continue.
5. Sign in to your Intuit account. Click Continue and Continue with my account.
6. We'll email you a single-use code. Enter them and select Continue.
7. Choose to Chat with us or Have us call you.

By maintaining accurate records and promptly fixing any discrepancies, you'll ensure compliance and smooth payroll operations for your business. If you have further questions on handling taxes in QBDT, please comment below. I'm here to aid in improving your efficiency.