If the quarter has yet to end, we can leave the overpayment as is. It will be applied toward the additional payroll tax liabilities for the remainder of the quarter until it is fully used, Linda.
Before we address the overpayment, we need to verify that the payment made outside of QuickBooks Online has been applied to the overdue tax balance. Here's how:
- From the Payroll Tax Center, click on the Payments tab.
- Review the list of payments and locate the specific tax payment you'd like to record.
- If the payment is listed, click the ▼ dropdown, select Mark as paid, and confirm by choosing Yes, mark paid.
After completing the steps, we can now record the overpayment:
- In the Payments tab, scroll down to the Payment resources section.
- Select Record tax payments (prior tax history).
- Click Add payment and choose the correct Tax Type.
- Enter the required payment details:
• Period Start Date and Period End Date: These are the dates when the taxes accrued.
• Payment Date
• Check Number (optional)
• Memo (optional)
• Payment Amount (this should reflect the overpayment).
- Select Submit payment to save.
Once the overpayment has been recorded, the Resolve option will appear. This feature allows you to either request a refund or apply the overpayment to future tax payments. You can use this link for reference: Resolve a payroll tax overpayment.
If the Resolve option doesn’t appear, we recommend contacting our Live Payroll Support Team during our support hours. They have the tools to apply and help resolve the overpayment.
Feel free to reach out if you need additional assistance or have any other questions.
