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kend2
Level 2

Payroll Liability Balance discrepancy

I show an "Overdue" liability for Q2 2019 and a balance of $0.75.  (I believe this alert started showing up this year.) The liability account balance is actually zero.  It seems to be related to an excess payment of $0.75 was made in Q1 2019 ($2.25 payment was made for Q1, but only $1.50 was owed), but the alert for Q2 2019 doesn't seem to recognize the credit.  Trying to understand what initiated the alert, and what to do to cancel it since I do not think it is valid.

3 Comments
AlcaeusF
Moderator

Payroll Liability Balance discrepancy

Thank you for posting here in the Community, @kend2.

 

Let me help you cancel the overdue liability showing in QuickBooks Desktop.

 

There are several reasons why it's showing up in your liabilities. I suggest you run a payroll summary report to understand what initiated the alert to show up on your end.

 

You can use a liability adjustment to cancel or remove the overdue amount from the Liabilities section. Before you start, please create a back up to ensure you can restore the data anytime you want to undo the changes.

 

Once done, I recommend you visit the Adjust payroll liabilities in QuickBooks Desktop article. It contains detailed instructions about correcting payroll liabilities within the product.

 

Also, we suggest you work with an accountant while making the adjustments. It helps ensure that your books will be accurate and error-free.

 

In case you need the steps, here's how:

 

  1. Go to the Employees menu, then Payroll Taxes and Liabilities, and select Adjust Payroll Liabilities.
  2. Use these tips to help complete the fields.
    • Use the same date as the last paycheck of the affected quarter. Use today's date if you’re working on the current quarter.
    • The Effective Date is used to calculate amounts on your 940 and 941 forms as well as the Payroll Liability Balances Report.

    Is the adjustment for the company or an employee?

    • Select Employee Adjustment if the item you're adjusting is a company-paid item. It updates the YTD info reported on the employee W-2 form.
    • Select Company Adjustment if you want the balance to be removed from the Payroll Liability Balances Report.
  3. Select the employee.
  4. Complete the Taxes and Liabilities fields.
    • Select the Item Name you want to adjust.
    • Enter the Amount of the adjustment. Use a positive number to increase or negative to decrease the amount.
    • Wage Base is rarely needed, even when you override a tax amount on a paycheck.
    • You only use Income Subject to Tax when making a wage base adjustment.
    • You can use the Memo field to enter a note about the adjustment for future reference.
  5. Select Accounts Affected and then OK.
  6. Repeat for other employees if you need to, and select OK.

I've included some articles in case you need some ideas about creating a payroll summary report in QuickBooks, as well as running a payroll checkup:

 

I'm only a few clicks away if you have any other questions. Wishing you and your business continued success.

kend2
Level 2

Payroll Liability Balance discrepancy

Thank you for your response.  It does not seem to address my specific question.  The payroll summary report appears to be accurate without any issues.  It shows a zero balance, which I believe is correct.  Therefore I do not see any adjustments that need to be made.   My problem is that the "Pay Taxes & Other Liabilities" screen (see attached screenshot" shows that I have an "Overdue" liability from Q2 2019 of $0.75.  This is in error and does not agree with the payroll summary report.  Also, the message just started showing up this year.  I did not get the message in 2019.

MorganB
Content Leader

Payroll Liability Balance discrepancy

Good morning, kend2.

 

Thanks for following up with those details. I'd like to provide some additional info so you're able to remove the overdue liability.

 

Here's how:

 

1. Click the Employees tab at the top of the page.

2. Select Payroll Center.

3. Choose Pay Liabilities.

4. Click the overdue liability and then select the View/Pay button.

5. Select Save and close when you're finished.

 

I recommend checking out the following article for even more details:

Following these steps will remove the liability that's showing as overdue. I'm just a comment or post away if you have any other questions.

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