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?
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:
Open QBDT and go to the Help menu at the top to get to the About QuickBooks.
Press Ctrl + Alt + Y or Ctrl + Shift + Y keys to open the Setup YTD Amounts window.
Tick Next until the Enter prior payments section.
Select Create Payment to record the payment in the Enter Prior Payments window.
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.
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.
Continue to the next by hitting on OK then select Next Payment. Once all payments have been entered, click Done to save your work.
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?