W-2 Box 16 State Wages not picking up Adjusted Payroll Liability. Only on Box 1

I'll share details to help you adjust the amount of Box 16, fqgarcia209.

It's possible that only federal taxes are included in the adjustment. This is the reason why it's not affecting your state taxes.

When creating a payroll liability adjustment, make sure to include the wage base to it would also change the amount for Box 16. Aside form that, you also need to make sure that it's an employee adjustment to get this option.

Here's how:

1. Go to the Employees menu and select Payroll Center. 
2. Proceed to the Transactions tab and select Liability Adjustment.
3. Look for the adjustment that you made and double-click on it.
4. Go to the Adjustment is for section and select Employee. Then, look for the name of the employee.
5. Select the state withholding in the Item Name column.
6. Enter the amount that you need to adjust in the Wage Base column.
7. Click OK. 

You can read more details about how this feature works in this article: Adjust Payroll Liabilities in QuickBooks Desktop.

Additional references about adjusting and making sure payroll amounts are correct can also be found here:

• Run Payroll Checkup
• Correct Year-to-date (YTD) Additions or Deductions on a Paycheck When the Wrong Tracking Type Was Us...

Please know that you can always reply to me or post more questions if you need anything else. We're always here to help.