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MichelleBh
Moderator

QuickBooks Online: How do I adjust Payroll Tax Liabilities so that they match what the State is showing due?

I value how hard you worked and how long you took to fix the check/bank register balances problems, @builders wife. Accuracy and transparency are key to building strong relationships with our customers, and we're committed to delivering the highest level of service possible.

 

We understand how important it is for our customers to have accurate financial records. That's why we go above and beyond to provide exceptional service to ensure that your check and bank register balances are correct as soon as possible. 

 

Rest assured that you'll see the correct check/bank register balances once our payroll correction team adjusts the payments. If necessary, you can also contact our payroll team again to follow up on the issue.

 

Visit the following links below to learn how to manage automatic tax payments and know which payroll taxes and forms QuickBooks Payroll pays and files for you:

 

 

If you have any other questions while working with QuickBooks, let me know by adding a comment below. I'm just a post away from helping. Keep safe.

KS_tax_prep
Level 2

QuickBooks Online: How do I adjust Payroll Tax Liabilities so that they match what the State is showing due?

I HATE QB online.  It is terrible for accountants.  Doesn't have near the capabilities as desktop.  Now I see you cannot adjust payroll liabilities without calling them.  What a complete waste of my time, when I can do it myself.  If they make everyone switch to online, I will find something else and take all my clients with me.  I have heard that they will keep Enterprise on desktop, so that may be the only route to not got to QB Online.  

kctwarrior
Level 1

QuickBooks Online: How do I adjust Payroll Tax Liabilities so that they match what the State is showing due?

Same problem here. Was on the phone for 2+ hours and transferred to several different people and no resolution. Payroll liabilities simply need adjusting and nobody has an answer. Unreal.

meowanacortes
Level 1

QuickBooks Online: How do I adjust Payroll Tax Liabilities so that they match what the State is showing due?

This was frustrating for me, too, but it's actually very easy to do. Just turn off the automated taxes and forms feature and then you can make any necessary journal entries to adjust your liability accounts. You can turn it back on when you're finished. To turn off the automated taxes and forms feature, go to Payroll > Payroll tax from the side menu. In the upper right corner of the screen, you'll see Automated taxes and forms: On. Click the Change Setting link right below that. Scroll down to the Taxes and Forms section and click the pencil icon on the right side. Uncheck the Automate taxes and forms selection and Save. Now you can access your payroll liability accounts in the journal entry screen and make whatever adjustments you want. Once you're finished, turn the automated taxes and forms feature back on and everything will be correct. 

Divide Fire
Level 3

QuickBooks Online: How do I adjust Payroll Tax Liabilities so that they match what the State is showing due?

Still on Desktop here, but are you seriously telling me this is not a feature available after YEARS of complaints?  I will NOT be forced into an inferior product, and neither will my clients.

ML55
Level 4

QuickBooks Online: How do I adjust Payroll Tax Liabilities so that they match what the State is showing due?

Another year and the same issues persist. Looks like developers do not know how to fix those bugs and glitches of software. Here is a posting from last year: Going back to 940 tax liability, the software is not design to calculate it according to IRS Publication 15, because it calculates exempt corporate officers 940 tax based on 6% without taking in consideration credit for all other employees who are subject to state unemployment taxes according to Instruction to Form 940 line 10... In my opinion,,Q.B.O. should use worksheet for Line 10 to calculate FUTA tax liability for exempt corporate officer after each payroll and adjust FUTA tax liability as soon as credit for exempt officer. Therefore it overstate tax liability for small businesses pushing to pay taxes even it is not necessary.. Maybe, it will be reasonable to let users determine tax rate for FUTA as it is designed in desktop version.

I am wondering if this will be fixed, because numerous businesses suffering from this and tech support can't do anything to adjust tax liability pushing taxpayer to overpay taxes and later get refunds from IRS, because of this poor developed software. I personally have wasted substantial time this year asking to adjust FUTS tax liability to match Form 940 amount produced by the same software Q.B.O. without success. I am wondering if there is any payroll tax experts in Q.B.O. tech support to match amounts of 940 tax liability to pay with the Form 940 for filing.

ML55
Level 4

QuickBooks Online: How do I adjust Payroll Tax Liabilities so that they match what the State is showing due?

It is not so easy if you state. We have Automated taxes and forms off all the time. It is easy to do JE to adjust tax liability in general ledger; however this adjustment does not automatically to change amount of the taxes to be paid.   It still shows different amount that should be paid and when try to pretend and post as they were paid, software does not allow to change (edit) amount of payment in check register. stating: Looks like we've hit a little snag. How about you try again in some time? 

In order to reconcile bank statement, you need additional journal entry for a difference. 

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