Overpayment on 941

Your concern about the overpayments is understandable, shellbmb. I can provide details about this and guide you in handling them. 

Once you have an overpayment, it could be due to several reasons. However, you can quickly resolve it in your payroll product to correct your reports and tax forms. 

Here are some possible reasons for overpayments:

• Your SUI tax rate decreased after a tax payment was made. To keep your SUI tax liability accurate, update your SUI rate in QuickBooks.
• Voided or deleted paychecks after a tax payment was made.
• A duplicate tax payment in the same liability period. 

I recommend reviewing your tax payment report. You can edit the date if the payment has been allocated to the wrong quarter. If there are any duplicates, you can delete them.

Once verified, we can apply the credit to future tax payments. However, before that, we'll need to create a liability check and apply the credit. 

It's advisable to consult your accountant before taking further action to guide you in recording the overpayment credit and ensure it's correctly applied to your tax forms. You can utilize our Find an Accountant tool if you don't have one. 

To create a liability check:

1. Go to the Banking menu, then select Write Checks.  
   
2. In the Expenses tab, select the account.
   
3. Complete the necessary information, then hit Save & Close. 

To proceed with applying overpayments to a future tax payment, follow the steps below:

1. Hover over to Employees menu, then select Payroll Taxes & Liabilities. 
2. Select Pay Scheduled Liabilities.
3. In the Pay Taxes & Other Liabilities section, select the tax or liability you want to pay. Select View/Pay.
4. Select Check/E-pay, then click the Expenses tab. 
5. Choose the account where you want to apply for the credit.
6. Enter the amount of the credit as a negative figure in the Amount field.
7. In the memo field, enter an explanation of the transaction.
8. Hit Recalculate. You can apply it to your next payment if you still have a credit balance.

Furthermore, here are some helpful articles you can check out for future reference:

• E-file and e-pay federal forms and taxes. 
• Correct or Amend Forms 941 and 940. 
• Troubleshoot Form 941 in QuickBooks Desktop Payroll. 

I can assist you further with your overpayments or 941 forms. You can use the reply button below to enter your follow-up questions.