Payroll Tax Error

Thanks for elaborating on your concern regarding your payroll concern, @amyv466. I'll provide further details about this and help you complete this task.

Before we proceed, make sure to reach out to your employees and provide an explanation of the situation to ensure they are fully informed about it.

When withholding taxes in QuickBooks Desktop (QBDT), you can make a positive liability adjustment for the tax. Then, manually record the payment by creating a liability payment check in the Pay Liabilities tab. Please note that you'll need to pay the tax outside of the program via the EFTPS website because QBDT is for tracking purposes only. Allow me to walk you through the process.

Here's how to make a liability adjustment:

1. Go to Employees, then Payroll Taxes and Liabilities. 
2. Select Adjust Payroll Liabilities.
3. In the Date and Effective Date fields, select the last paycheck date of the affected month or quarter.
4. In the Adjustment is for section, select Employee Adjustment to correct your employee’s YTD info. Then select the employee's name. Do this even if the item being adjusted is company-paid.
5. Under the ITEM NAME column, select the payroll item you want to adjust.
6. In the AMOUNT column enter the positive amount.
7. Enter the amount under the INCOME SUBJECT TO TAX to make a wage base adjustment.
8. Under Memo, enter a note about the adjustment for reference. 
9. Select Accounts Affected, then OK.
   • Select Do not affect accounts to leave balances unchanged for the liability and expense accounts. The adjustment will only change the year-to-date amounts on your payroll reports.
   • Select Affect liability and expense accounts if you want the transaction to reflect in the liability and expense accounts.
10. Click the OK to close the Affect Accounts window.
11. Select Next Adjustment for additional employee adjustments, or select OK to save the changes.

Once done, you can now create a liability payment check by following Step 2 in this article: Pay and file payroll taxes and forms manually in QuickBooks Desktop Payroll.

I've got you covered if you have other payroll concerns or questions about your taxes in QBDT. Drop your comment below, and I'll gladly help.