Learn how to handle overpaid taxes in QuickBooks Payroll.
Are you seeing a negative tax amount in your payroll product, or have a credit notice from the IRS or state agency? We explain how to resolve tax overpayment issues.
Do you need help with an underpaid payroll tax? Check out resolve a payroll tax underpayment.
Step 1: Determine if the overpayment is valid
Not all tax overpayments are valid. The following are examples that can lead to invalid overpayments and you’ll need to fix these issues rather than resolve the overpayment:
- Incorrectly entered tax rate
- Incorrect liability period on a tax payment
- Incorrectly recorded historical tax payment
The following are examples of valid tax overpayments:
- Your tax rate decreased after a tax payment was made
- One or more paychecks were voided or deleted after a tax payment was made
- You made a duplicate tax payment in the same liability period
Step 2: Resolve the overpayment
If you received a credit notice for an overpaid payroll tax from the IRS or your state agency, see What to do if you receive a payroll tax notice.
You can resolve some payroll tax overpayments in your payroll product to correct your reports and tax forms. Select your payroll plan below for instructions.
|Note: Not sure which payroll service you have? Here's how to find your payroll service.|