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:

• Create a payroll summary report
• Run payroll checkup

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

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.

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:

• Scheduled liabilities payroll show as overdue or in red

• QuickBooks Desktop Payroll management

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.

I have a question I've been trying to get answered for a long time. I use Quickbooks desktop, and have assisted payroll. Small business, one employee. I process scheduled payroll and hand write checks. Here is the situation,  I processed payroll for a scheduled payroll, the amount for the check was written correctly and the check was cashed at the bank by the employee, the bank mistakenly missed .06 cents from the check so clearly, because the amount cashed at the bank was .06 off, the check did not match to my payroll in quickbooks bankfeeds. This is when I called assisted payroll so that they could void, and then recreate a check IN quickbooks to adjust the taxes and everything, the new check she created she added a net offset so that the employee wasn't paid twice (because he cashed the check at the bank). The employee kept the original amount cashed and the .06 cents went onto his next check, Everything in QB payroll is good and matches. I Then had the original check in my bankfeeds that did not match my payroll so i had nothing to tie the check too. I need to clear this amount somehow because it sits in my payroll liabilities on my balance sheet. I know I likely need to debit the payroll liabilities account but I don't know where to credit the amount. I really appreciate any help with this

Hi there, @quinn1. Thanks for sharing the details about your concern. I can help you get to the department that handles balancing your payroll accounts in QuickBooks Desktop (QBDT).

I can see you're subscribed to Assisted payroll. I recommend contacting our Payroll Support to ensure that the .06 cents off balance will be matched to its correct account. They have the tools to verify and do a screen share session to get to the bottom of it.

Here's how:

1. Go to the Help menu, then select QuickBooks Desktop Help.
2. Select Contact Us.
3. Enter your concern, then select Continue.
4. Choose a way to connect with the support, either start messaging with a support expert or get a callback from an expert.

Checking the support hours to know the best time will cut the long time of waiting in the queue. For more details, check out this article: Contact Payroll Support.
 

Moreover, you can review this reference whenever you're ready to assess your books: Reconcile an account in QuickBooks Desktop. It contains tips and fixes on issues you might encounter in the future.

I'll be around if you have other concerns or questions about payroll. Let me know in the comment section below. Take care!