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Community Explorer **

Setting up payroll tax liabilities

How do Setup QuickBooks desktop payroll tax payments to the correct employer paid payroll tax payments if it is not calculating the correct total?

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Best answer 07-16-2018

Accepted Solutions
Moderator

Re: Setting up payroll tax liabilities

Hello, jcal.

 

I'd be glad to help you with correcting your payroll tax liabilities in QuickBooks Desktop.

 

First, let's track the incorrect calculation by pulling up a payroll item detail report.

 

Here's how:

 

1.    Go to Reports menu and select Employees & Payroll.
2.    Choose Payroll Liability Balances.
3.    Click the Customize Report tab at the top of the report.
4.    Click the Filters tab.
5.    Select Payroll Item from the list of filters.
6.    Click the Payroll Item drop-down list and choose This Calendar Year.
7.    On the report, double-click an amount to display a list of all transactions that affect the amount.
8.    If you find that your liabilities are not correct, you can adjust them.

 

Here's how to adjust your liability balance:

 

1.    Go to the Employees menu, choose Payroll Taxes and Liabilities, and then click Adjust Payroll Liabilities.
2.    In the Date field, enter the date for which you are making the adjustment.
3.    In the Effective Date field, enter the date that you want this adjustment to affect your liability balance.


QuickBooks uses this date to calculate amounts on your Forms 940 and 941 and on the payroll liability balances report.


4.    Choose whether to associate this liability adjustment with the company or a specific employee.
For example, if you overaccrued federal unemployment tax (FUTA) for an employee, click the Employee option and choose that employee's name from the drop-down list.
5.    In the Item Name field, choose the payroll item.
6.    In the Amount field, enter the amount of the adjustment.
7.    Click Accounts Affected to check or modify the setting, and click OK.
8.    If you need to adjust an employee's wage base, click the Show Wage Bases button.
QuickBooks adds a Wage Base column to the window. You rarely need to change an employee's wage base. Even if you overrode a tax amount on a paycheck, the employee's wage base is probably correct.
9.    When you've finished adjusting the liability, click OK.

 

As always, you can contact our Payroll Care support if you need assistance with the adjustment. It is much easier to check which amounts should be adjusted by using their screen sharing tool.

 

I'm just a comment away if you have other questions with your tax liabilities.

 

 

 

 

 

 

 

9 Comments
Super Contributor ***

Re: Setting up payroll tax liabilities

Hey there,

 

You should have an active payroll subscription .

Follow the steps in link

 

https://community.intuit.com/articles/1436801-set-up-and-pay-scheduled-or-custom-unscheduled-liabili...

Moderator

Re: Setting up payroll tax liabilities

Hello, jcal.

 

I'd be glad to help you with correcting your payroll tax liabilities in QuickBooks Desktop.

 

First, let's track the incorrect calculation by pulling up a payroll item detail report.

 

Here's how:

 

1.    Go to Reports menu and select Employees & Payroll.
2.    Choose Payroll Liability Balances.
3.    Click the Customize Report tab at the top of the report.
4.    Click the Filters tab.
5.    Select Payroll Item from the list of filters.
6.    Click the Payroll Item drop-down list and choose This Calendar Year.
7.    On the report, double-click an amount to display a list of all transactions that affect the amount.
8.    If you find that your liabilities are not correct, you can adjust them.

 

Here's how to adjust your liability balance:

 

1.    Go to the Employees menu, choose Payroll Taxes and Liabilities, and then click Adjust Payroll Liabilities.
2.    In the Date field, enter the date for which you are making the adjustment.
3.    In the Effective Date field, enter the date that you want this adjustment to affect your liability balance.


QuickBooks uses this date to calculate amounts on your Forms 940 and 941 and on the payroll liability balances report.


4.    Choose whether to associate this liability adjustment with the company or a specific employee.
For example, if you overaccrued federal unemployment tax (FUTA) for an employee, click the Employee option and choose that employee's name from the drop-down list.
5.    In the Item Name field, choose the payroll item.
6.    In the Amount field, enter the amount of the adjustment.
7.    Click Accounts Affected to check or modify the setting, and click OK.
8.    If you need to adjust an employee's wage base, click the Show Wage Bases button.
QuickBooks adds a Wage Base column to the window. You rarely need to change an employee's wage base. Even if you overrode a tax amount on a paycheck, the employee's wage base is probably correct.
9.    When you've finished adjusting the liability, click OK.

 

As always, you can contact our Payroll Care support if you need assistance with the adjustment. It is much easier to check which amounts should be adjusted by using their screen sharing tool.

 

I'm just a comment away if you have other questions with your tax liabilities.

 

 

 

 

 

 

 

FMW
Senior Explorer ***

Re: Setting up payroll tax liabilities

Hello. my QB desktop payroll state unemployment tax liability indicated $17.17 less than what state calculated. I paid the state the 17.17 additional (total liability $603).  I made a PAYROLL liability adjustment:  Company $17.17. Affect liability and expense accounts. Payroll liability report showing -$17.17. QB THINKS I overpaid but I didn’t. That’s why I made adjustment. What an I doing wrong? Thank you. 

QuickBooks Team

Re: Setting up payroll tax liabilities

Hi @FMW,

 

Your payroll tax calculations depend on your payroll data and all the payroll transactions you've entered. I'm here to share a few insights and help you from there.

 

First off, your payroll tax calculation is always dependent on the following items:

  • Your state taxes set up for your employee
  • Your State Unemployment Insurance (SUI) rate
  • Your employee who reached the SUI wage base limit
  • Your setup for your payroll items

Thus said, you'll have to review all these items so you'll be able to locate and find the error of your payroll tax calculation.

 

In addition, here's an article you can read to learn more about your SUI tax calculation and how you can fix it: Fix Incorrect State Unemployment Insurance Tax.

 

As always, you can visit our Help Articles page for QuickBooks Desktop if in case you need to learn a few easy steps for any of your future tasks.

 

If there's anything else that I can help you with, please let me know in the comment section down below. I'll be always around ready to help.

Community Contributor *

Re: Setting up payroll tax liabilities

We use a payroll company to create our payroll checks for our non-profit.  But, I copy and enter their information into our Quickbooks file on the 2018 desktop Quickbooks for non-profits.

 

Up until yesterday, I was able to also create an unscheduled custom liability payment to the payroll company.  Something happened.  When I try to that now, there are no items to choose from under the list "payroll items"  on the "Pay Liabilities" page.  I don't know why they disappeared.  I must be able to select the 2 payroll items included for the tax deposit liability in order to create the liability check.  (One is the Federal 941 and the second is our state income tax).    How can I get both of those items to appear again?  Picture attached as png.

 

I'd appreciate your help!

Community Explorer **

Re: Setting up payroll tax liabilities

Did you notice before today, if there was a balance n each of those liability items?  Once you pay the amount in full (whatever the amount is indicated for that particular liability), then the item won't show, since there is a zero liability now that you've paid it. 

Once you enter your payroll, the liabilities will repopulate with whatever amounts are due to date.

 

 

Hope this helps. 

QuickBooks Team

Re: Setting up payroll tax liabilities

Yes, FMWjen, is right, MonseyMaiven. 

 

I'd like to add other possibilities why it didn't show: 

  • It can be the payroll item's posting account isn't a Liability account.
  • Taxes are generated from the payroll you run. It can be you haven't recorded any for the period. 
  • An over payment to these liabilities can also cause it not to show.

You can further check your payroll item's set up if the account type is a liability account. For any over payment, you can run the Payroll Liability Balances report

 

Check out this article as your reference if Payroll Liability and/or Balance Sheet Report shows incorrect amounts for payroll liabilities

 

Keep me posted if you have further questions. 

Community Contributor *

Re: Setting up payroll tax liabilities

You are absolutely my hero!  Once you made that suggestion, I double-checked and noticed that I had accidentally not changed the payroll date when I entered the most recent payroll.  So, Quickbooks thought that the liability payment had already been made.  When I corrected the date, the items reappeared.

 

I spent over 2 hours on the phone with Quickbooks and on chat with them and with their tech support teams, and none of them could figure out what had happened!  Thanks again!!

QuickBooks Team

Re: Setting up payroll tax liabilities

I'm glad I was able to help, MonseyMaiven. If you have further questions you can leave a reply below or post again.

 

Always know the Community Team is around and ready to help. Have a great day ahead!