We switched from Desktop to QBO mid Jan 2020. QBO is using the 940 tax I paid in early January of 2020 for 2019 to calculate the 940 tax owed for 2020. How do I fix this?

Hi @pdrmmr,

I'll answer this query for you about a Form 940 that was recorded under a different quarter. 

You have the option to delete tax payments that were recorded by hand. 

Here's how:

1. Go to the Taxes tab.
2. Select Payroll tax.
3. Under Taxes, hit View tax payments you have made.
4. Choose the name of the tax payment. 
5. Pick Delete under the View and Print Form drop-down menu.
6. Hit Yes to confirm.

If the option to delete the tax payment is unavailable, I suggest you contact our Technical Support team for assistance. See this article for the steps: Contact Payroll Support.

In case you want to record historical tax payments, then open this article: Recording prior tax payments. 

Post a reply if you have other concerns about your tax payments in QuickBooks Online (QBO). I'll be sure to handle them for you. 

Thanks Ryan, I did see that I can delete the payment, but the problem, if I delete it is gone from my register which we reconciled in the January 2020 reconciliation.  We were using Quickbooks online payroll before we switched from Desktop pro to QBO advance. Right now, when I go to the payments tab in Payroll tax it says we have an overpayment, but it is just the amount of the 940 payment made in last January for 2019.

I've got the steps you'll need on how to handle the said overpayment in QuickBooks Online, pdrmmr.

Please follow these steps:

1. From the Taxes menu, select Payroll Tax.
2. Select Pay Taxes.
3. Choose to Resolve overpayment next to the negative amount.
4. Select if applicable:
   > Apply to a future tax payment  (recommended): Your overpayment will be applied to the next liability period.
   > Request a refund - Select this option if you prefer to get a refund. Note that you still need to contact the IRS or state agency to get the actual refund.
5. Choose Mark as Resolved.
6. Select Contact tax agency for next steps to complete the task.

For more information, you can follow through with this article: Resolving a tax overpayment.

Also, check the run payroll reports to see the lists of several reports about your business and employees.

If I can be of any additional assistance concerning payroll taxes, do let me know. I'm here to keep helping.

Thanks Ryan, I did see that I can delete the payment, but the problem, if I delete it is gone from my register which we reconciled in the January 2020 reconciliation.  We were using Quickbooks online payroll before we switched from Desktop pro to QBO advance. Right now, when I go to the payments tab in Payroll tax it says we have an overpayment, but it is just the amount of the 940 payment made in last January for 2019.

Glinette,

I tried those steps but the problem is it is not an overpayment (QBO incorrectly thinks it is). It is the actual 940 tax payment made for 2019.  Because QBO thinks it is an overpayment, which it is not, it won't let me pay the 940 taxes for 2020. It tries to apply the 2019 amount to to the amount owed for 2020. This is not right, I need to pay the full amount due for 2020.

We'll have to do a payroll correction to adjust the amount, Pdrmmr.

I suggest reaching out to our payroll support. An agent will help you with adding the 940 tax amount. Here's how:

1. Click Help inside QuickBooks Online.
2. Select the Talk to a human option (then type it again when prompted).
3. When asked by the bot, type "Adjust tax amount."
4. Select I still need a human, then proceed with Contact us.
5. Click Let’s talk, then select either Get a call or Start messaging.

Once it's fixed, you're ready to pay the payroll tax.

You're always welcome to post here in the Community. Feel free to get in touch with us again.