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77495
Level 1

We currently have a credit in our 941 liability account because of an over payment. Is there any way to skip a payment so that we are not over paying them?

 
Solved
Best answer June 08, 2020

Best Answers
JonpriL
Moderator

We currently have a credit in our 941 liability account because of an over payment. Is there any way to skip a payment so that we are not over paying them?

Hello @77495.

 

You'll have to contact the IRS so you can confirm the amount of overpayment you've paid to them. You can read this article to learn more about how you can reach them: Internal Revenue Service Payroll Tax Compliance.

 

Once you've confirmed the overpayment, here's how you can resolve it in your payroll account:

  1. Go to Taxes.
  2. Select Payroll Tax.
  3. Click Pay Taxes.
  4. Select Resolve overpayment next to the negative amount.
  5. Choose either:
  • Apply to a future tax payment: If you wish to apply the overpayment to the next liability period.
  •  
  • Request a refund - If you wish to get a refund. From here, you'll have to contact the IRS to get the actual refund.

      6. Click Mark as Resolved.

 

In addition, here's an article you can read to learn more about resolving tax over[payment: Resolving a tax overpayment.

 

Lastly, I've got you these helpful articles you can read for ideas about how you can manage your account and payroll transactions: Help Articles for QuickBooks Online Payroll.

 

If there's anything else that I can help you with, let me know in the comments. I'll be happy to help.

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6 Comments
GraceC
QuickBooks Team

We currently have a credit in our 941 liability account because of an over payment. Is there any way to skip a payment so that we are not over paying them?

Hello there, @77495.

 

Currently, the option to skip a payment is unavailable in QuickBooks Online.

 

However, to zero out the liabilities category of your employee, you'll want to process bank deposit to show the refund amount you received in QuickBooks Online.

 

Here's how:

  1. Go to the +New icon.
  2. Select Bank Deposit
  3. In the Add other funds to this  deposit section, fill in the following fields:
      • Received from: Select or enter the vendor name.
      • Account: Select the Accounts Payable account. (Use the account you used for 941 payment)
      • Amount: Enter the check amount. 
  4. Hit Save and Close, once done.

For more information about this process, I recommend checking this article: How to record bank deposits.

 

Also, I'd suggest consulting an accountant if you're not familiar with the process and to ensure your books are correct.

 

Feel free to post again if you have any other questions. I'll be here in the Intuit Community to help. Have a great day ahead. 

77495
Level 1

We currently have a credit in our 941 liability account because of an over payment. Is there any way to skip a payment so that we are not over paying them?

Thank you for the reply, we have not received any credit on the liability. Do I need to request a credit on the account in order to zero out the account?

77495
Level 1

We currently have a credit in our 941 liability account because of an over payment. Is there any way to skip a payment so that we are not over paying them?

We have not received a refund on the account. Do I need to request a refund in order to get back on track?

JonpriL
Moderator

We currently have a credit in our 941 liability account because of an over payment. Is there any way to skip a payment so that we are not over paying them?

Hello @77495.

 

You'll have to contact the IRS so you can confirm the amount of overpayment you've paid to them. You can read this article to learn more about how you can reach them: Internal Revenue Service Payroll Tax Compliance.

 

Once you've confirmed the overpayment, here's how you can resolve it in your payroll account:

  1. Go to Taxes.
  2. Select Payroll Tax.
  3. Click Pay Taxes.
  4. Select Resolve overpayment next to the negative amount.
  5. Choose either:
  • Apply to a future tax payment: If you wish to apply the overpayment to the next liability period.
  •  
  • Request a refund - If you wish to get a refund. From here, you'll have to contact the IRS to get the actual refund.

      6. Click Mark as Resolved.

 

In addition, here's an article you can read to learn more about resolving tax over[payment: Resolving a tax overpayment.

 

Lastly, I've got you these helpful articles you can read for ideas about how you can manage your account and payroll transactions: Help Articles for QuickBooks Online Payroll.

 

If there's anything else that I can help you with, let me know in the comments. I'll be happy to help.

View solution in original post

LakesideTowing
Level 1

We currently have a credit in our 941 liability account because of an over payment. Is there any way to skip a payment so that we are not over paying them?

Step 5 is not available, it goes from Step 4 to Step 6, and does nothing but brings it the next quarter.

katherinejoyceO
QuickBooks Team

We currently have a credit in our 941 liability account because of an over payment. Is there any way to skip a payment so that we are not over paying them?

Hi there, @LakesideTowing

 

Thanks for joining this conversation. I appreciate you for following the steps provided by my peer JonpriL. I'm here to share additional insights about the tax overpayment you can only resolve in QuickBooks Online. 

 

These are: 

 

  • All federal overpayments (940, 941, and 944)
  • State unemployment insurance (SUI) overpayments
  • SIT overpayment for some states

 

Other tax payments you can't resolve are the following:

 

  • Specialized tax overpayments, including state disability insurance (SDI)
  • Workers' compensation (WC)

 

In this case, you'll need to connect with our payroll expert for further assistance. 

 

I'd also recommend you check pending or unapproved payments that may cause this issue. Here's how: 

 

  1. Select Taxes, then go to Payroll Tax.
  2. Click View tax payments you have made.
  3. Adjust the date range as needed.

 

For future reference, you can also read through these articles for additional information on how to resolve payroll tax issues:

 

 

Come again at any time if you have more questions, @LakesideTowing. I'm always around here to extend my utmost help. 

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