Created with Sketch.Learn about PPP and Loan Forgiveness, stay informed with the latest changes.
Created with Sketch.Questions about how to close your books for 2020? Visit our Year End Resources page.
Created with Sketch.New to QuickBooks or using a new product? Visit our Get Started resource page to help you get going.
Created with Sketch.Need to make changes to your account? Visit the Account Manager Portal.
cancel
Showing results for 
Search instead for 
Did you mean: 
Intuit

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.

Was this helpful?

You must sign in to vote, reply, or post

Need to get in touch?

Contact us