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Join nowThis question mainly pertains to making corrections so that the 2021 W2's we issue are correct.
Background: Our former bookeeper created a new Quickbooks file for us because our old file was bogged down and slow, etc. When she created the new QB file, she set up the Employee 401k LOAN payments as a pre-tax deduction. From January 2021 to October 2021, all of the 401k Loan Repayment deductions came out pre-tax instead of post-tax. {enter face palm here}. When the error was caught, we corrected it so that the remainder of the 2021 loan repayment deductions were coming out post-tax.
Is there a way to fix this underreporting error in Quickbooks prior to issuing the 2021 W2's?
Hello, fillupstrucking.
I want to make sure I’ll be able to provide you with the right resolution to resolve this. We're unable to pull up your account in the Community. Also with regards to the payroll correction, I recommend contacting our Support team. They have the proper tools to securely check your account and investigate the cause of this.
Here’s how to reach out to them:
You can also see this article for more details and ensure to review their Support Hours to know when to contact them that is convenient for you: Contact QuickBooks Desktop support.
Keep me posted for additional questions or other concerns. I'd be more than happy to help. Wishing you the best of luck.
Thank you for your response. The cause of the discrepancy has been corrected, so that doesn't need investigating. We are looking for steps on how to retroactively correct the underpaid tax liability since the 401k loan payments were taken out pre-tax rather than post-tax.
I've got the steps you'll need to correct your tax liability in QuickBooks Desktop, fillupstrucking.
You can create an adjustment to correct the underpaid tax liability. I recommend reaching out to your accountant to guide you with the proper tracking and recording of entries. This way, your books are accurate.
To adjust your payroll liabilities you can follow these steps.
You can check out this article for more details on the process: Adjust payroll liabilities in QuickBooks Desktop.
If you need additional references about payroll in the future, please feel free to access our site: Help articles for QuickBooks Desktop Payroll.
I'll be keeping an eye out for your response if you have other questions about adjusting your payroll liability, @fillupstrucking. Keep safe always.
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