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Accidentally ran payroll without any taxes being deducted due to me not making the requested payroll update. Now I need to edit checks/payroll already printed and cashed.

Was in a rush and I opted out of a payroll update yesterday when running payroll. Just realized that because of this Quickbooks did not make any deductions for taxes from my employees checks. Checks have already been distributed to employees and most have been deposited or cashed. How can I correct this mess? I need to find out how I can reprint/edit checks so that taxes are correct and somehow recoup the amounts from my employees who didn't pay any taxes this week.

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Best answer 12-10-2018

Accepted Solutions
Established Community Backer ***

Make notes of the net checks distributed. Create a duplic...

Make notes of the net checks distributed. Create a duplicate check number for each and post each to Employee Advance. Add it as a payroll item if you do not have already.

Void issued payroll checks. Install update. Run payroll again for correct taxing. Go into each check detail before saving and enter deduction from net to the employee advance item. Each new payroll check will be zero but taxes will be correct. Next period when you run payroll you will deduct remaining advance amounts from each employee.
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Established Community Backer ***

Make notes of the net checks distributed. Create a duplic...

Make notes of the net checks distributed. Create a duplicate check number for each and post each to Employee Advance. Add it as a payroll item if you do not have already.

Void issued payroll checks. Install update. Run payroll again for correct taxing. Go into each check detail before saving and enter deduction from net to the employee advance item. Each new payroll check will be zero but taxes will be correct. Next period when you run payroll you will deduct remaining advance amounts from each employee.
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Thank you John. Got it all straightened out thanks to you.

Thank you John. Got it all straightened out thanks to you.
Established Member

How would I correct this if paychecks were through Direct...

How would I correct this if paychecks were through Direct Deposit?
Active Member

This same thing happened to me with payroll because the p...

This same thing happened to me with payroll because the payroll tax tables hadn't updated.  I didn't realize it until after everyone had cashed their checks. I was planing on some of the suggestions on this page and rerunning payroll. After updating the tax tables I ran the next weeks payroll and QuickBooks automatically deducted the correct amount of taxes for both weeks. Hope this helps, it saved me a ton of time. 

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Did you get a lot of complaints from employees?

Did you get a lot of complaints from employees?
Experienced Member

I am in the middle of the same problem.  i told all of th...

I am in the middle of the same problem.  i told all of the employees and was hoping to not have to do all that was in the previous response.  Hoping it all comes out this week in their paycheck.
Experienced Member

Re: Accidentally ran payroll without any taxes being deducted due to me not making the requested payroll update. Now I need to edit checks/payroll already printed and cashed.

Just wait until you go to do payroll NEXT WEEK! QuickBooks' latest maintenance release created a NIGHTMARE.  FOUR clients called me today with the same issue - no payroll taxes withheld.  They downloaded updated and then it took out the taxes and after digging deeper, we realized it took DOUBLE SS and MED!!!!!!!!! Some employees are so over-withheld that we're going to have to issue refund checks to them because they are going on seasonal layoff.   The fix for now is to  uninstall and reinstall Quickbooks and NOT install the patch (release 9).  Thank heaven I have an earlier download that doesn't have that awful patch in it!  I have advised all clients to WAIT until they hear from me to install this update,  with the hope that QB will fix the thing!

 

 

Experienced Member

Re: Make notes of the net checks distributed. Create a duplic...

So this happened to me as well.  Unfortunately it was on the final 2018 paychecks.  So I've got understated taxes for 2018 - causing issues trying to run my 941.  If I correct it, then I'll have overstated taxes for 2019.  Any suggestions?

QuickBooks Team

Re: Make notes of the net checks distributed. Create a duplic...

Hi there, @Martha.

 

Thank you for joining this thread. I can help you correct the taxes for the final 2018 paychecks.


If the tax table is outdated, this can cause calculation errors on your employees' paycheck. To resolve this, let's run the payroll tax table update:

  1. Click Employees.
  2. Choose Get Payroll Updates.
  3. Select the Download entire payroll update radio-button.
  4. Choose Update.
  5. Wait until the update is complete.

 

Since you've already issued the paychecks, you will have to void and re-create them to show the right taxes. This will automatically update your taxes and form amounts. Any difference in net amount can be adjusted on the next payroll.

 

For in-depth information, please refer to this article: QuickBooks Desktop calculates wages and/or payroll taxes incorrectly.

 

That should correct the paychecks and the forms in your QuickBooks, Martha.

 

Let me know if you have follow up questions about payroll. I'm always here for you. Wishing you all the best!

Experienced Member

Re: Make notes of the net checks distributed. Create a duplic...

How do you fix the differences on the next check?  I'm not following you on that, especially since my next checks are in a different year.

QuickBooks Team

Re: Make notes of the net checks distributed. Create a duplic...

Thanks for getting back, Martha.

 

Allow me to step in and help you some more.

 

To correct the difference in the net amount, you can create an addition or deduction item that is non-taxable and apply it on your next payroll. These items won't be added to the employee's taxable earnings.

 

Here's how to set up an addition payroll item:

  1. Go to Lists.
  2. Click Payroll Item List.
  3. Select the Payroll Item button, and click New.
  4. Select Custom Setup, and click Next.
  5. Select Deduction, and click Next.
  6. Enter your preferred name of the payroll item then click Next.
  7. Leave the first two fields blank, select the account which will be affected by this payroll item in the Liability account drop-down list and click Next.
  8. Make sure None is selected in the Tax Tracking Type window and click Next.
  9. Continue to click Next until you reached the Finish button.

Here's how to set up a deduction payroll item:

  1. Go to Lists.
  2. Click Payroll Item List.
  3. Select the Payroll Item button, and click New.
  4. Select Custom Setup, and click Next.
  5. Select Deduction, and click Next.
  6. Enter your preferred name of the payroll item then click Next.
  7. Leave the first two fields blank, select the account which will be affected by this payroll item in the Liability account drop-down list and click Next.
  8. Make sure None is selected in the Tax Tracking Type window and click Next.
  9. Continue to click Next until you reached the Finish button.

For the detailed steps and additional information, you can go through this article: Create a non-taxable reimbursement payroll item in QuickBooks Desktop Payroll.

 

Please don't hesitate to reach back to me if you have other payroll questions. I'd be delighted to answer them for you.