Forgot to add WA Cares in July, August, and September to payroll - how to correct this in QBD and withdraw the money from employees?

Welcome to the Community space, @nulfa.

I acknowledge that you were under the impression that it would be added automatically, but, it did not. Rest assured, I can assist you in rectifying this issue and ensuring necessary adjustments are made. 

Let's begin by setting up a deduction that can be added to subsequent paychecks. This will help accurately calculate and withhold specific amounts from employees' paychecks for various purposes. 

Set up the deduction item: 

1. Navigate to Lists, then Payroll Item List.
2. Choose the Payroll Item ▼ dropdown, then New.
3. Select Custom Setup, then Next.
4. Click Deduction, then Next.
5. Enter the name of the deduction, and select Next.
6. If applicable, select the name of the plan administrator (or add it), and the account number. Then select Next.
7. Choose the applicable Tax tracking type. Select None if the deduction is after-tax. 
8. Select Next three times.
9. Leave the Default rate and limit fields blank unless these apply to all of your employees. 
10. Click Finish.

Once done, add the item to the employee profile:

1. Choose Employees, then Employee Center.
2. Select your employee.
3. Click ✎, then select Payroll Info.
4. From Additions, Deductions, and Company Contributions, add the deduction item.
5. Enter the amount per period and a limit if applicable.
6. Choose OK.

Lastly, let's create a liability adjustment for the employee. This helps correct any errors or discrepancies in the calculation or allocation of payroll liabilities. For detailed steps, I suggest utilizing this resource: Adjust payroll liabilities in QuickBooks Desktop Payroll.

I'm also sharing this link for future reference, which gives you an overview of the payroll taxes and forms that QuickBooks Payroll takes care of for you: Understand the taxes and forms that QuickBooks payroll submits for you.

By following these instructions, you can add WA Cares to your employees' payrolls for the specified months and adjust the money accordingly to allocate it to the WA state. If you encounter any difficulties or have further questions, please don't hesitate to reach out to me for assistance. I'll be glad to help further.

Hi @Rubielyn_J ,

Thanks for getting back to me on this.

Unfortunately, your instructions of how to include the WA Cares deduction in future payrolls does not help me - as I have already set that up and done it successfully for my October payroll.

What I need is a solution of how to get WA Cares into my payroll for my past payroll cycles for July, August, and September - so that those past 3 payrolls I have completed already (without WA Cares, unfortunately) several weeks ago can get adjusted or corrected.

My idea was to create WA Cares-only deductions (how?) for those past 3 months and add them manually as a one-time correction entry on the next payroll.

Any hints how to do that best?

How other who have missed to withdraw WA Cares from paychecks since July 2023 addressed this issue of forgotten WA Cares withdrawals from employees?  

Hi @Rubielyn_J ,

Thanks for getting back to me on this.

Unfortunately, your instructions of how to include the WA Cares deduction in future payrolls does not help me - as I have already set that up and done it successfully for my October payroll.

What I need is a solution of how to get WA Cares into my payroll for my past payroll cycles for July, August, and September - so that those past 3 payrolls I have completed already (without WA Cares, unfortunately) several weeks ago can get adjusted or corrected.

My idea was to create WA Cares-only deductions (how?) for those past 3 months and add them manually as a one-time correction entry on the next payroll.

Any hints how to do that best?

How other who have missed to withdraw WA Cares from paychecks since July 2023 addressed this issue of forgotten WA Cares withdrawals from employees?  

Let me help you fix and add WA Cares for past payroll, nulfa.

In QuickBooks Desktop (QBDT), you can deduct the amount as a lump sum in your next paycheck and manually edit the amount during paycheck creation.

However, the last and recent quarter forms will be damaged because July, August, and September are part of the previous quarter. It will result in missing reports and potential penalties.

With that, it's best to create a liability adjustment for the previous quarter and make a non-taxable deduction for the next paycheck.

Here's how:

1. Go to the Employees menu, then Payroll Taxes and Liabilities. 
2. Select Adjust Payroll Liabilities.
3. In the Date and Effective Date fields, select the last paycheck date of the affected month or quarter.
4. Click Employee Adjustment in the Adjustment is for: section. Then, choose the employee.
5. Under the Item Name column, pick the payroll item you want to adjust.
6. Enter the amount. 
7. Tap Accounts Affected, then OK.
8. Select OK to close the Affect Accounts window.
9. Choose Next Adjustment if you have additional employees to enter an adjustment for. Otherwise, click OK to save the changes.

Afterward, you can create a non-taxable deduction item.

In addition, let me attach these articles to help you understand tax calculations in QuickBooks Desktop:

• How QuickBooks calculates payroll taxes 
• Troubleshoot paychecks calculated incorrectly

Let me know if you need additional assistance managing your business growth and payroll transactions in QBDT. I'm here to help. Take care!