Assisted Payroll Refund for SUI overpayment

I'm here to help you track the refund for SUI overpayment, Lisa.

When you receive a refund check from a tax agency, you may have overpaid payroll taxes. We'll show you how to find the amount and then record the overpayment so your taxes are accurate.

First, I recommend creating a payroll liabilities balance report to find the amount that matches the refund check amount. 

If you find an amount that matches, proceed to the next steps. Otherwise, review the refund notice. It is possible that the check includes interest or that some of your refunds have been used to settle outstanding tax debts.

I suggest following these steps if the refund amount matches the report without interest or a partial refund:

1. Go to Employees and select Payroll Taxes and Liabilities.
2. Select Deposit Refund Liabilities.
3. In the Vendor drop-down menu, select the agency that sent the refund check.
4. In the Refund Date field, enter the deposit date.
5. In the For Period Beginning field, enter the first day of the pay period that the refund affects.
6. Select how you want QuickBooks to handle the deposit:
   • Group with other undeposited funds: Adds the amount to a holding account. This option requires you to use Make/Record Deposit to complete the process.
   • Deposit To: Record the amount to the account of your choice.
7. In the Taxes and Liabilities section, select the payroll items affected by the refund.
8. In the Amount column, enter the deposit as a positive number.
9. Click OK.
10. For QuickBooks Desktop Payroll Assisted, you’ll need to send the tax adjustments to us:
    1. Select Employees, then Send Payroll Data.
    2. In the Send/Receive Data window, you’ll see Tax Adjustments and funds to be withdrawn. We won’t debit the amount.
    3. Select Send to Intuit.

If the steps above don't apply to you, I suggest browsing this article for the other scenarios to create the appropriate refund check: Handle a Payroll Tax Refund from an Agency.

Also, it's recommended to create a backup copy before making any changes to your company file. Doing so ensures you have the original details you can restore in case of data loss or damage.

In addition, it's easy to view your employee data and monitor your business finances in QuickBooks Desktop. You can open any payroll reports that suit your needs. To give you a list of those reports and an overview of what data they show, please head to the Excel-based payroll reports page. 

If you need further assistance correcting state tax credit for unemployment taxes, feel free to get back here. I'd be glad to assist you further. 

I completed the below steps and now my PAYROLL LIABILITY ITEM REPORT for UNEMPLOYMENT shows the $318.75 as something I owe! 

I also competed the below, but I did not see any TAX ADJUSTMENTS

I tried calling PAYROLL ASSIST and they could NOT help me!!

1. elect Employees, then Send Payroll Data.
2. In the Send/Receive Data window, you’ll see Tax Adjustments and funds to be withdrawn. We won’t debit the amount. 
3. Select Send to Intuit.

I've got you covered on how to resolve the incorrect balance amount on the report in QuickBooks Desktop, Lisa NY.

We appreciate you for performing the steps provided by my colleague to resolve this issue. Before creating a Deposit Refund of Liabilities in QuickBooks, we'll need to run a payroll liabilities balance report  to check for credits that match the refund and the tax item sent by the agency. If there are credit amounts, then we'll need to follow the steps in this article to resolve this: Handle a payroll tax refund from an agency in QuickBooks Desktop Payroll.

However, if there are no credits, then we'll need to do a regular bank deposit and post it to the Payroll Expense account. This way the refund will not show as overdue in the report. Here's how: 

1. On the Homepage, select Record Deposits / Make Deposits.
2. In the Payments to Deposit window, select the payments you want to combine. Then OK.
3. In the Make Deposits window, choose the Payroll Expense account. you want to put the deposit into from the Deposit to dropdown.
4. Check the deposit total. Make sure the account and selected payments match the deposit slip from your bank. Use your deposit slip as a reference.
5. Enter the date you deposited at your bank.
6. Add a memo as needed.
7. Press Save & Close.

To learn more about this one, check out this article: Record and make bank deposits in QuickBooks Desktop. Just in case there's an incorrect balance when running the Payroll Liability Balances report, we can make liability adjustments  to fix this incorrect amount. You can check out this article for more details: Fix a discrepancy on the Payroll Liability Balances report in QuickBooks Desktop Payroll.

Once done, review the liabilities if they are updated in QuickBooks. Let me guide you on how:

1. Run the payroll summary report again to check if everything is correct.
2. Run the payroll liability balances report to check if the amounts to be paid are correct.
3. If your taxes are underpaid, check out Resolve a payroll tax underpayment. If it’s overpaid, check out Resolve a payroll tax overpayment to learn how to handle it.

Feel free to update us after performing the solutions, as I want to ensure this is resolved for you. Please reply to this post and I'll get back to you. You have a good one. 

So to confirm, I should basically reverse what you originally instructed me to do and simply treat this amount as a a DEPOSIT? Correct? 

@Lisa NY 

Since the refund is a reduction in your SUI expense, create a deposit and assign your SUI expense account to it.  'Received from' is your state unemployment agency.  That will increase your bank account with a corresponding reduction in your SUI expense.  Date the deposit using the date of the actual deposit.  

THANK YOU SO MUCH @Rainflurry  You have no idea how this helped me and I spent 8 hours with 8 different QB reps at assisted payroll who had no clue how to help me! You saved me!

@Lisa NY 

Glad to help.