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Edit payroll items used on paychecks

Learn how to change incorrect payroll items used on paychecks.

If you set up a payroll item incorrectly and used this payroll item on one or more paychecks, it could cause incorrect tax totals to be withheld.

Additionally, year-end tax forms, such as the W-2, 941 and state forms could be incorrect and need to be fixed.

We'll show you how to correct it.

  1. Edit the payroll item.
    • Select Lists on the top menu bar. Then select Payroll Item List.
    • Right-click the item and select Edit.
    • Select Next twice. Enter the correct tax tracking type. Then select Next.
    • Select the correct taxes. Then select Next.
    • Select Calculate Based on Quantity. Then select Next.
    • Enter the limit type, if all the employees have the same rate and limit.
    • If the employees do not have a default rate and limit but do have the same rates and limits, enter the amounts.
    • Select Finish.
  2. If the Employees do not have the same rates, enter the rates on the employee records.
    • Select Employees menu  then Employee Center.
    • Double-click the employee's name.
    • Select the Payroll Info tab.
    • In the Addition, Deduction and other Company Contributions enter the correct rate and limit.
    • Select OK to close out when finished.
  3. Verify the Wage Base.
    • Select Reports on the top menu bar. Then select Employees and Payroll.
    • Select the Payroll Summary Report.
    • Change the date to this calendar year.
    • Zoom in on the payroll item for each employee. And verify the amount and wage base are correct.
  4. If the amount and/or wage base is incorrect, make a payroll liability adjustment.
    • From the Employee menu, select Payroll Taxes and Liabilities.
    • Select Adjust Payroll Liabilities.
    • Enter the Date and Effective Date.
    • In the Adjustment is for area, select the Employee and then select the employee's name.
    • Under Taxes and Liabilities, select each of the payroll items. And enter a negative number to reduce the amount and/or Wage Base. Or enter a positive number to increase the amount and/or Wage Base.
Note: If the payroll item is an employee deduction, the amount deducted was too large. And if you do a payroll liability adjustment, you must refund the amount to the employee. We recommend writing a check for the amount owed the employee.

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