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vgardner218
Level 1

State Withholding Liability Correction

We needed to make an E-payment and filing for state withholding taxes.  Going through the liabilities payment process in QuickBooks Enterprise, the payment date that was showing was past the due date from the state.  As a result, we went online to the State agency web site and made the payment and filed the tax forms that were required.  Now we are showing and Overdue status entry for the withholding tax liability.  We have paid the state and filed the appropriate forms.  Now we need to remove the liability status from QuickBooks.  How can we do this?

3 Comments 3
BettyJaneB
QuickBooks Team

State Withholding Liability Correction

Help has arrived, @vgardner218.

 

Tracking the tax payments that you made outside QuickBooks is a breeze. I got you covered with entering them in the system to remove their overdue status.

 

You can use the Enter prior payments feature in QuickBooks Desktop to record the tax payment you've made directly from the state agency. This process will remove the paid liabilities that are showing as overdue in the Pay Liabilities section.

 

To do that:

  1. Open QBDT and go to the Help menu at the top to get to the About QuickBooks
  2. Press Ctrl + Alt + Y or Ctrl + Shift + Y keys to open the Setup YTD Amounts window.
  3. Tick Next until the Enter prior payments section.
  4. Select Create Payment to record the payment in the Enter Prior Payments window. 
  5. Enter the Payment and For Period Ending dates, then choose the payroll tax item that you've already paid in the Taxes and Liabilities field.
  6. Click on Accounts Affected button and select Do not affect accounts. By doing so, the prior payments will not affect your balances or show up in the bank register. 
  7. Continue to the next by hitting on OK then select Next Payment. Once all payments have been entered, click Done to save your work.
  8.  Hit Finish to close the window.

For complete details about this procedure, please see this link: Learn how to enter historical tax payments in QuickBooks Desktop Payroll.

 

Please let me know how it goes by leaving a comment below. If you need anything else, don’t hesitate to ask. I’ll be here to help. Have a most pleasant day!

vgardner218
Level 1

State Withholding Liability Correction

Thank you for your response.  I followed the directions provided but it did not eliminate the problem.  In fact it added another past due liability item to the list.  Was there a step that was left out in making the correction?

katherinejoyceO
QuickBooks Team

State Withholding Liability Correction

Thanks for coming back for more support,@vgardner218. There are various reasons why your scheduled liability still shows as overdue in QuickBooks even though you have already made the payment. 

 

You can check out this article for more insights: Scheduled liabilities payroll show as overdue or in red

 

If  the steps shared in the article above still didn't fix the issue, I'd suggest contacting our QuickBooks Payroll Chat support team for further assistance. Or you can request a callback.

 

Here's how:

  1. Go to Help, then select QuickBooks Desktop Help.
  2. Click Contact Us, then enter your concern as "State withholding correction", then click Continue.
  3. Select Get a callback from an expert (availability may be limited)

 

They can take a closer look at the issue and may direct you to the Payroll Correction team to fix your state liability withholding. 

 

For future reference, read through this article to help you learn more about payroll processing and taxes in QuickBooks: Payroll 101

 

Feel free to message again if you have additional questions. We're always here to help in any way we can. 

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