Payroll Liabilities Overdue-Not true

I appreciate the detailed information you've shared, @garciahvac.

Let's get rid of the overdue status of your payroll liabilities so you can get back to working order.

There are several reasons why scheduled liabilities show as overdue in QuickBooks Desktop. Here's a list of them:

• Liabilities haven't been paid
• Liabilities were paid, but never entered into QuickBooks
• Liabilities were paid through Write Checks or Bill Payment
• Liabilities were overpaid in one period and underpaid in a prior period
• Paid through date is after the check date
• Paid through date crosses into next year

To fix them, you can follow the steps in this article depending on the cause you've experienced: Fix overdue or red scheduled liabilities in QuickBooks Desktop.

In addition, I also suggest seeking help from your accountant to guide you on which correct period you should apply the refund. If you don't have an accountant, you can find one through this link: Find-a-ProAdvisor website.

Feel free to come back to this post if you have other concerns or follow-up questions about your payroll liabilities. I'll be right here to help.

Thank you for your reply.  I have tried every way possible.  If I adjust the liabilities to reduce it or try to pay it, the alert goes off but it creates a credit. I tried on the check window to enter the $3.00 liabilities tab and enter negative expenses tab and it creates a credit.  I already tried the steps for the liabilities overpaid in one period and underpaid in another.  I overpaid for the month of March and underpaid for the month of April, but now the amount overdue is not the $3.00 but the full amount for federal, Social Security and Medicare for the month of March.  Is there a way to adjust it without affecting the liabilities?

I appreciate you for trying the steps shared by my colleague, garciahvac.

When you create an adjustment, the account affected is the liability account. If you don't want to use the said account, I'd suggest reaching out to your accountant so they can guide you on the best alternative account to use. You can find one through this link: Find-a-ProAdvisor website.

Also, if you run into issues on running the Payroll Liability Balance report, you can check this reference: Fix a discrepancy on Payroll Liability Balances report in QuickBooks Desktop Payroll.

Keep me posted whenever you have concerns about managing your QuickBooks file.

Thank your for following up and for taking the time to read my post.  I think I figured how to get rid of the alert.

Let me guide you on how you can clear the overdue payment without affecting your liabilities, garciahvac.

We can enter historical tax payments outside the Payroll Setup Window and select the Do not affect accounts option for prior payments won't show in the bank register. To do so, you can follow the steps outlined below:

1. From the Help menu, choose 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. In the Enter Prior Payments window, select Create Payment to enter all prior payroll tax and non-tax payroll liability payments you have made during the current or previous years.
5. Enter the Payment Date and For Period Ending date accordingly (in many cases these dates will be the same).
   
   (Note: If there is already an item with an amount selected under Taxes and Liabilities, select Next Payment. This may be a prior payment that you have already entered.)
6. In the Taxes and Liabilities field, choose the payroll tax item that you've already paid and want to record in QuickBooks Desktop. And enter the amount. You can add a memo to remind you what the payment is for.
   
   • Payments for prior quarters are entered as lump sums, and current quarter payments are entered per payroll.
7. Select the Accounts Affected... button. This displays options for how you want the payment to affect your Chart of Accounts (COA).
   
   • Do not affect accounts: Use this option if your QuickBooks accounts have correct balances. Selecting this option will cause the prior payment to not show up in the bank register.
   • Affect liability accounts but not the bank account: Use this option if your checking account has the correct balance. Selecting this option will cause the prior payment to not show up in the bank register.
   • Affect liability and bank accounts: Use this option if none of the account balances are correct. Selecting this option will cause the prior payment to show up in the bank register.
8. After you have completed your first payment, continue to the next by selecting Next Payment. Continue this process until you have completed all payments. Then select Done to save your work.
9. Click Finish to close the window.

Additionally, QuickBooks provides selected reports for your payroll and employee so you can manage and keep track of your employees' expenses. Learn how to customize these reports to get the data you need most. I've added this article for more details: Customize Payroll And Employee Reports.

Please get back to us if you have any questions about overpayment. We're here to make sure everything is covered.