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.