Hello there, @ebo8302.
Please note that making a journal entry alone will not directly affect the payroll data or change the balances. In this case, since the journal entry did not have the desired effect, it would be necessary to delete the journal entry. By removing the journal entry, you can ensure that the payroll liabilities are not affected by any incorrect adjustments.
To properly adjust the payroll liabilities for the quarters where the IRS applied part of your ERC, To apply the ERC credit and adjust the payroll liabilities in QuickBooks Desktop Payroll, you can follow these steps:
- Open QuickBooks Desktop and go to the Employees menu.
- Select Payroll Taxes and Liabilities and then Adjust Payroll Liabilities.
- Next, choose the appropriate payroll item for the ERC credit.
- Enter the date of the adjustment and the affected tax period.
- Enter the amount of the ERC credit that should be applied to the payroll liabilities for that period.
- Click the accounts Affected to select the liability accounts that should be adjusted.
- Review the adjustment details and click OK to save the changes.
By following these steps, you should be able to zero out the payroll liabilities for the quarters where the IRS applied part of your ERC.
Furthermore, it would be best to reach out to the outside party who filed the returns or consult a tax professional to resolve the issue and ensure the correct adjustments are made.
Let me know if you have concerns.
