![QuickBooks Help](https://uxfabric.intuitcdn.net/web-app/sh-exp-sbg-app-experience/sbg_ohh_icon.19f2ae89.png)
Handle overwithheld or underwithheld employee-paid taxes
by Intuit• Updated 1 week ago
Learn how to handle when an employee-paid taxes are over or under-collected in QuickBooks Online Payroll and QuickBooks Desktop Payroll.
As an employer, it's important to make sure your employees are properly taxed. When employees are underwithheld or overwithheld, you need to make adjustments to correct it.
Here are some reasons you may have under or over collected employee-paid taxes:
- Your employee wasn’t marked as subject to a tax and should have been.
- Your employee had a payroll item set up incorrectly.
- A tax rate changed.
- Tax tables weren’t updated.
Note: Not sure which payroll service you have? Here's how to find your payroll service. |
Step 1: Create a payroll summary report
The payroll summary report gives you the total payroll wages, taxes, deductions, and contributions. This helps you identify wage and tax discrepancies.
Step 2: Fix the wage and the tax amount discrepancy
Step 3: Refund overwithheld or collect underwithheld taxes on the next paycheck
To learn how to pay your employee back for an incorrect paycheck deduction, check out Refund your employee for a deduction that was overwithheld.
Sign in now for personalized help
See articles customized for your product and join our large community of QuickBooks users.
More like this
- Resolve a payroll tax overpaymentby QuickBooks•143•Updated March 20, 2024
- View your previously filed tax forms and paymentsby QuickBooks•777•Updated June 11, 2024
- Fix underpaid payroll taxesby QuickBooks•41•Updated March 05, 2024
- Set up QuickBooks Online Payroll to pay and file your payroll taxes and formsby QuickBooks•1188•Updated 1 month ago