Payroll Adjustments on P&L

.Hello there, @MP11.

Yes, you're right that users can run a payroll checkup to help you find problems that affect your liabilities. However, this can be used when you have a paid version or have an active payroll subscription in QuickBooks Desktop. You'll want to check this link for more details: QuickBooks Desktop Payroll.

In your case, you'll want to manually run a report than can help you figure out the error and use it reference when correcting paychecks.

I've added articles you can check that contain information about payroll liabilities:

• How to use QuickBooks to pay payroll taxes and other liabilities.
• Run payroll liability balances report.
• Payroll detail review report.

You can go back here if you have additional concern. Take care, MP11

Thank you for the input. I will try this and if I have challenge I'll come back. :)

Good Afternoon-

I did go through the links. I was able to run the Payroll Liabilities Balances to see where it's off, I then looked at the Payroll Liability Item by transaction, it's the attached file. Is this the report I would use to find what needs to be corrected? I can't run the payroll detail report in the 2018 quickbooks pro version. Will the 2 liability reports I mentioned be enough for me to make the the correct updates to the account? 

The other thing I forgot to ask when the IRS sends us a check for the 941 form I have been posting them to payroll liabilities. would that be correct? I've been trying to figure out the liabilities to make sure it's correct. 

Thank you,

Mariann

Thanks for getting back to us, Mariann.

Yes, the Payroll Liabilities Balances report is one of the reports that will help identify what makes the taxes calculate incorrectly.

As for the check from the IRS, I'd recommend reaching out to your accountant so you'll be guided on the correct accounts to use. If you don't have one, you can look for one through this link: Find a ProAdvisor.

Feel free to pin these links as your references in dealing with tax adjustment:

• How to use QuickBooks to pay payroll taxes and other liabilities
• Run payroll liability balances report
• Payroll detail review report

Don't hesitate to Reply, Mariann. I'll get back to you the soonest. Keep safe!

You commented on the Payroll Liabilities Report is one of the reports. What are the other reports? I'm using Quickbooks pro 2018 and some the reports listed on the links provided I can't find.

I can ask the accountant he doesn't use quickbooks so that's why I usually come here. I 'll try to get some help. The Pro Adviser never respond for the last I've reached out to people I rarely get a response from someone.

Thank you for the help.

Mariann

QuickBooks Desktop offers a number of report to help you review if the amounts are correct, MP11.

However, they're only available if you have an active payroll subscription and if you have a supported version of QuickBooks.

If you can access the Payroll Item Detail report, you can take a look at the Wage Base column. Then, manually calculate using the tax rate of the item to see if the amount in the Amount column is correct. For example, if your wage base for Social Security is $1000, then the amount should show 6.20. 

To make the corrections, you can either edit the paycheck or create a liability adjustment. You can use this article as a guide: Adjust Payroll Liabilities in QuickBooks Desktop.

Additional guidance when editing or correcting payroll amounts are also shared here:

• Correct Year-to-date (YTD) Additions or Deductions on a Paycheck When the Wrong Tracking Type Was Us... 
• Payroll Liability and/or Balance Sheet Report Shows Incorrect Amounts for Payroll Liabilities 

Don't hesitate to always ask questions if you need more help when working in QuickBooks. We're always her to guide and assist you.