Other Payroll Items not calculating user-defined payroll item

lunarindustrial · ‎February 05, 2020

I have an issue getting local taxes to work in QuickBooks 2017.

I entered a new payroll item:

Tax tracking type: Local income tax

Calculate based on quantity: Neither (though I've tried all three)

Default rate and limit: Rate: 1.85% Limit: (blank) Limit type: One-time (though I've tried all three)
Taxable compensation: (all payroll items)

I then went into the employee setup - Payroll Info - Taxes - Other

Under Item name I selected the new, user-defined payroll item

OK - OK to save settings and exit

But, when I create a paycheck, this payroll item does not show user Other Payroll Items. If I try to choose something myself under Other Payroll Items, I get, "You are not allowed to add, delete, or change the Other Tax payroll items here," and directions to go back into the employee setup - Payroll Info - Taxes - Other.

I created this new payroll item after I had already started a paycheck. Perhaps I should start the paycheck from scratch? If so, how do I delete the saved paycheck entry? (this paycheck was never finished, it is just a draft)

ChristieAnn · ‎February 06, 2020

Hi there, lunarindustrial.

The reason the item is not showing in the Other Payroll Items section because you created the paycheck before setting it up.

To sort this issue, I suggest reverting the paycheck by following these steps:

Here's how:

1. Click Employees menu.

2. Choose Payroll Center.

3. Select Pay Employees tab and click the Start Unscheduled Payroll button.

4. You'll be routed in the Enter Payroll Information page. Then, right-click the name of the employee and select Revert Paycheck.

I attached screenshot below for visual reference.

REVERTING 2.JPG

For additional information on reverting a paycheck and how to save paychecks and return later to finish creating payroll without losing your data, please check this article: How to save or revert pending paychecks.

Please check this article on how to make changes in paycheck date depends on what processing state your payroll is in: Change or edit paycheck date.

You are always welcome to post if you have other questions related with QuickBooks. I'm here to help you.

View solution in original post

ChristieAnn · ‎February 06, 2020