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How do I clear a Payroll Liability amount in the Payroll Center?

I have two items in my payroll tax liabilities that need to be zeroed out and I've tried using the payroll adjustment function but they remain as unpaid in my "Pay Taxes & Other Liabilities" tab.  I need to know the best way to zero those balances out.  One is from a credit that we had with Alaska ESC and so we paid a lesser amount that quarter than QB calculated and the other is a rounding error, so Alaska ESC shows us owing 1 penny less than QB calculated.  So, even though I put in the payment amount the adjustment for that penny, it still shows as needing to be paid.

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Best answer 12-10-2018

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The error for the offset adjust is from using the Payroll...

The error for the offset adjust is from using the Payroll Item. The adjustment should have been entered on the Expenses tab. You can Fix that check any time.

The point is, you want to show you are "paying" what is accrued, but Adjusting it for a rounding drift on the Expenses tab. Adjusting the item, means you under- or over-paid that Item, which was not the intent.

When you have a Credit with the agency, or when you owe an additional fee or penalty, and you want to Adjust the Check from gross to net, make the adjustment on the Expenses tab and do not affect the payroll item(s).

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Established Community Backer ***

The error for the offset adjust is from using the Payroll...

The error for the offset adjust is from using the Payroll Item. The adjustment should have been entered on the Expenses tab. You can Fix that check any time.

The point is, you want to show you are "paying" what is accrued, but Adjusting it for a rounding drift on the Expenses tab. Adjusting the item, means you under- or over-paid that Item, which was not the intent.

When you have a Credit with the agency, or when you owe an additional fee or penalty, and you want to Adjust the Check from gross to net, make the adjustment on the Expenses tab and do not affect the payroll item(s).

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Thank you, qbteachmt! It worked perfectly!

Thank you, qbteachmt! It worked perfectly!
Established Community Backer ***

Glad to help.

Glad to help.
Anonymous
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Thanks for dropping by here in the Community, ebartlett....

Thanks for dropping by here in the Community, ebartlett.

I'd be more than happy to help you settle the payment that is still showing as overdue in the Pay Liabilities tab.

Before we proceed, I'd like to acknowledge your effort in sharing a very detailed information about your concern and the steps you've done. Since you already made the adjustment to correct the amount that you should be paying for this specific tax, you'll just need to enter a prior payment. That way we can zero out the balance of the tax payment in the Pay Taxes and Liabilities tab. Please refer to this article for entering prior payments in Quickbooks:

https://community.intuit.com/articles/1437199

If you're have any difficulties with the process, just let me know. I'll zip right back to help you out, ebartlett.

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Re: The error for the offset adjust is from using the Payroll...

What do you mean by "Expenses" Tab?

 

QuickBooks Team

Re: The error for the offset adjust is from using the Payroll...

Hello there, Kathi Calhoun.

 

Welcome to the QuickBooks Community. I'm here to lend a hand with locating the Expenses tab.

 

Here's how:

 

  1. Click the Employees tab at the top menu bar.
  2. Select Payroll Center.
  3. Go to the Pay Liabilities tab.
  4. Below Pay Taxes & Other Liabilities, put a check mark on the tax you want to pay.
  5. Click View/Pay.

For additional insight into the Expenses tab, I'm adding the screenshots that I recommend:
 

 PayrollLiabCheck.JPG

 

PayrollLiabCheck2.JPG

Please let me know what else I can do to help you today. The Community is always here for you.

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Re: The error for the offset adjust is from using the Payroll...

I'm not following all of this. Our state unemployment computation is online and often different from what is suggested by QB. I pay through the payroll liabilities but have been adjusting the amount on the check.  I can't remember or find how to get rid of the balance.  If I use the "expenses" tab, won't that deduct it from my account?  and if that is the correct way what account should I list?

Anonymous
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Re: The error for the offset adjust is from using the Payroll...

It's nice to have you in the thread, @Lindainvestigator. I'd be glad to lend a hand with adjusting your payroll liability check.

 

If you have a credit with the agency, you'll need to enter an adjustment to correct the liability showing on your payroll liability check. To know more about liability adjustment, please refer to this article: Adjust payroll liabilities.

 

However, if you have penalty or additional fee with the agency, then you'll need to use the expense tab as suggested by our Community backer on this thread. I'd recommend consulting with your accountant first, to ensure an accurate record of the account/category type.

 

If you need additional references about payroll in the future, please feel free to access our site: Help articles for QuickBooks Desktop Payroll.

 

I'll be keeping an eye out for your response if you have other questions about adjusting your payroll liability check. Cheering you to continued success.

 

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Re: The error for the offset adjust is from using the Payroll...

The problem is on the payroll liabilities on QB. I paid 16.00 (or so) based on what the Indiana unemployment website calculated. QB thought I owed $26 and so now show I still owe $10. I previously was able to get rid of that but don't remember how.

 
Thanks for your help!
QuickBooks Team

Re: The error for the offset adjust is from using the Payroll...

Greetings, Lindainvestigator.

 

I'd love to join this discussion and provide the clarification you're looking for.

 

I reviewed your original post and based on the conversation so far, I can see that my colleague LilyC provided you with the right solution. Although just to clarify, it's not always necessary to have a credit with the agency to adjust your payroll liabilities.

 

There are also cases where the calculation from QuickBooks and your state agency's website don't match. When that happens, it'll be a good idea to review your payroll details and identify where the discrepancy is coming from. Once you've found it, take note of the amount and then make the appropriate adjustments for each employee to get rid of the balance ($10).

 

I know you've got this. However, if you need further assistance with this, I'd recommend you get in touch with our Desktop Payroll Team. This team has special tools capable of starting a screen sharing session and guiding you through the process.

 

Please let me know how it goes, I want to make sure this is taken care of. Thanks again for reaching out, I'll be standing by for your response.

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Re: The error for the offset adjust is from using the Payroll...

I have the same problem, how exactly do I fix this? I don't completely understand the steps.

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Re: The error for the offset adjust is from using the Payroll...

I'm having the same issue. What are the exact steps to solve this. I'm not undertanding completly how to do it. I did the adjust liability but no matter how I put it in it still says I own a penny. The problem might be that the check was written in 2018 and I am trying to do the adjust for Jan 2019. I can't change the check since the taxes for 2018 have already been done

Anonymous
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Re: The error for the offset adjust is from using the Payroll...

I appreciate you joining in the discussion, @DebMT.

 

Allow me to help share additional information about making a liability adjustment in QuickBooks Desktop payroll.

 

In the Date field, you'll need to enter the date that you want the adjustment to be effective. Then on the Effective Date, you'll need to enter the date you want this adjustment to affect your liability balance. 

 

If a Liability Check had already been created for the old payroll item, the Payroll Liability Balance Report shows a negative balance and the new item shows a positive balance as a result of the adjustment. 

 

To correct the Liability Check that had already been entered or sent for payment, here's what you'll need to do:

 

  1. Go to the Banking menu, then select Use Register.
  2. Choose your payroll bank register, then select OK.
  3. Right-click on the Liability Check you created for the old payroll item, then select Edit Liability Check.
  4. Go to the Payroll Liabilities tab. Replace the old payroll item with the new one.
  5. Select Save & Close, then Yes.

It'd be best to reach out to our Desktop Payroll Specialist so they can help guide you with the steps in correcting your payroll liability in Quickbooks. They have the necessary tools to view your Payroll Summary report and check whether to associate this liability adjustment with the company or a specific employee.

 

I'm sure they'll be able to correct this for you. Keep me posted if you have other questions about liability adjustment. I'll be here to help however I can.

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Re: The error for the offset adjust is from using the Payroll...

Lily,

 

Since the check was written in 2018 and taxes are done, won't that screw things up by adjusting that check?

 

Anonymous
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Re: The error for the offset adjust is from using the Payroll...

Hello, @DebMT.

 

Thanks for the immediate response and for providing clarification about the payroll liability. 

 

Please disregard the steps for the liability check. Since the tax liability was already paid in the previous year you can enter prior payments for the penny difference and make sure to select Do not affect accounts.

 

Here's how:

  1.  Go to the Help menu and select About Intuit QuickBooks.
  2.  Press CTRL+Shift+Y.
  3.  On the Set Up YTD Amounts window, click Next until you reach the Enter prior payments.
  4.  Click the Create Payment tab.
  5. On the Prior Payments of Taxes and Liabilities, make sure to select the correct check date and payroll item.
  6. Enter the penny difference on the Amount column and select Do not affect accounts on the Accounts Affected tab.
  7. Once done, click OK.

 

 

 

You can also refer to this helpful article for more details about historical payments: Enter historical tax payments in Desktop payroll.

 

That should do it. Keep me posted if you're able to adjust the penny owed with these steps. I'll be on the lookout for your reply if you need further help with your payroll liability.

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Re: The error for the offset adjust is from using the Payroll...

Hi Lily, 

I got ahold of Jeremy on chat with payroll, and yep that's exactly what he did and my issue has been resolved. Thanks very much for replying

Anonymous
Not applicable

Re: The error for the offset adjust is from using the Payroll...

Hi, @DebMT.

 

You're most welcome. I'm glad Jeremy was able to help you with the steps in entering the prior payment. 

 

As always, you can visit us again in the Community anytime if you need anything. Have a good one.

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Re: The error for the offset adjust is from using the Payroll...

Ok!  I finally figured out mine!  Thank you!

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Re: The error for the offset adjust is from using the Payroll...

I finally figured it out.  The date of the liability adjustment has to be the Qtr end date for that liability.  So it the penny was from 1Qtr2019, make sure the liability adjustment date is 03/31/2019.  I just did that and the amount disappeared from the Payroll Liabilities window.  (I don't see that explanation in any of the resolutions provided by the Quickbooks Team ... just sayin')  :)

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Re: The error for the offset adjust is from using the Payroll...

I finally figured it out.  YAY!  The date of the liability adjustment has to be the Quarter End date that the liability was for.  So if it was for 1Qtr 2019, date the adjustment 03/31/2019.  I did that and it finally disappeared from the Pay Liabilities window!   :)

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941 Refund check left me with an overdue payroll liability

If someone can help me please.... I received a refund check for the 941 payroll liability... I entered the refund thru the appropriate window in QB.... however, now it is showing an overdue balance for that amount in the pay liability window in payroll... how do i clear this now?  Not understanding how i can deposit a refund check, but at the same time, QB says we owe this amount....

Also, the check states 12/2018 F-941.  What should be the correct "for period beginning" date on the refund window?

TIA

Anonymous
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Re: 941 Refund check left me with an overdue payroll liability

You'll want to run the Payroll Liability Balances report, WeissF. 

 

Let's check to see which federal taxes were overpaid. I'll show you how:

 

  1. Go to Reports
  2. Select Employees and Payroll
  3. Choose Payroll Liability Balances.
  4. In the From and To drop-down, you'll want to select 10/01/2018-12/31/2018.
  5. Click Refresh

 

Afterwards, let's create the refund check. Here are the steps: 

 

  1. Click Employees
  2. Select Payroll Taxes and Liabilities. Then, Deposit Refund of Liabilities
  3. In the Vendor drop-down, choose United States Treasury (the name depends on your setup). 
  4. In the Deposit To drop-down, choose the right checking account. 
  5. Under Item Name, choose the federal taxes which were overpaid. 
  6. Enter the refund amount in the Amount column.
  7. In the Refund Date, choose the date of the check. 
  8. For Period Beginning, choose the first date of the liability period. 
  9. Once done, click OK

 

I've attached sample screenshots below.  Based on the images, there were overpayment for the federal taxes in July 2019. I chose 07/01/2019 for For Period Beginning date. 

 

PLB Report

 

Refund Check

 

Let me know if you need more help with your Payroll Taxes. Just leave a comment below. 

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Re: 941 Refund check left me with an overdue payroll liability

I'm sorry, this did not help me :(

Let's say I have made the deposit for the refund check using the "deposit refund liability" window...

I just don't understand why the amount of the deposit is now showing overdue in my "pay liability " window....

Where did I make a mistake?

QuickBooks Team

Re: 941 Refund check left me with an overdue payroll liability

Hi @WeissF,

 

Let's go over the steps on how you can properly record a payroll liability refund check.

 

First thing I'd suggest is to run the Payroll Liability Balances report.

 

Here's how:

  1. Go to Employees.
  2. Select Employees & Payroll. then select Payroll Liability Balances.
    • If there are credits, proceed to the steps on how to enter a payroll liability refund check.
    • If there are no credits, create a manual bank deposit. And post it to Payroll Expense.

How to enter a payroll liability refund check:

  1. Go to the Employees menu, then select Payroll Taxes and Liabilities. Then select Deposit Refund Liabilities.
  2. Select the name of the vendor who submitted this refund check.
  3. In the Refund Date field, enter the deposit date.
  4. In the For Period Beginning field, enter the first day of the pay period that the refund affects.
  5. Choose between the 3 options how you want QuickBooks to handle the deposit.
  6. In the Taxes and Liabilities section, select the payroll item/s affected by the refund.
  7. In the corresponding Amount column, enter the positive amount.
  8. Select Ok.

For other situations you might have with recording a payroll liability refund check, take some time to view this article: Record a payroll liability refund check. It shows the steps for when the taxing agency has withheld a portion of the refund for a different balance due, as well as an interest paid to you on the check.

 

If ever you need further assistance, let me know by posting it in the comments below. I'll be sure to get back to you.

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