cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
Frequent Explorer *

MI-Obligation Assessment

On error (not catching it) an employee was deducted weekly MI-obligation Assessment tax.  How can I fix this?  

Solved
Best answer 12-27-2018

Accepted Solutions
QuickBooks Team

Re: MI-Obligation Assessment

Hello there, @Cedarrun.

 

Thanks for posting your concern in the Community space. I can help you correct the error you aren't catching with the MI-Obligation Assessment Tax withholding.

 

You'll need to make a payroll adjustment to record and correct your previous tax withholding. This way, you'll also be able to file correct filing forms. First, run the Payroll Summary report to get the amount on the payroll item that needs adjustment.


Here's how:

  1. Go to Reports menu.
  2. Select Employees and Payroll.
  3. Click Payroll Summary.
  4. Set the date range.
  5. Click Refresh.

After which, create the liability adjustment:

  1. Go to Employees menu.
  2. Select Payroll Taxes and Liabilities.
  3. Click Adjust Payroll Liabilities.
  4. Supply Date and Effective Date.
  5. Choose between Company and Employee adjustment.
  6. In the Taxes and Liabilities table, enter all necessary information.
  7. Then, click the Accounts Affected button to select where this adjustment will affect.
  8. Click OK.
  9. In the adjustment window, click OK to save adjustment.

For more information and reminders in creating a payroll liability adjustment, just refer to this article: https://community.intuit.com/articles/1437271.

 

That should let you adjust your MI Obligation Assessment tax. Let me know how things go once you've tried the steps. I'll be around if you need help. Have a nice day!

Frequent Explorer *

Re: MI-Obligation Assessment

Thank you that helped..!!  One more question, how do the employee get reimburse for the taxes that was taken out of them?  Do I right them a check?

QuickBooks Team

Re: MI-Obligation Assessment

Thanks for the prompt reply, @Cedarrun.

 

I appreciate you getting in touch again even though I forgot to include this earlier on my post. However, I have some information that should help you record a reimbursement for the employee you overwithheld taxes.

 

Yes, in case the employee demands an immediate refund, you may release a manual check as reimbursement. Make sure to use a payroll expense account since this is an expense made to your employee.

 

On the other hand, QuickBooks Desktop automatically enters the adjustments for these items, but does not correct the net amounts to match the original paycheck. To give your employee a reimbursement, on the employee's next paycheck, create a payroll item for tax adjustment to either collect or refund the money to the employee.

 

To add payroll Item:

  1. Go to Lists at the top menu bar.
  2. Select Payroll Item List.
  3. Click the drop-down arrow for Payroll Item.
  4. Select New.
  5. Choose Custom Setup, and click Next.
  6. Select Wage, and click Next.
  7. Select the wage type, and click Next.
  8. Name the payroll item as Reimbursement, and click Next.
  9. Select the tracking account.
  10. Then, click Finish.

Then, you can add the new payroll item to the employee's setup so it'll automatically show when creating a paycheck.

 

Here's how:

  1. Go to Employees at the top menu bar.
  2. Select Employee Center.
  3. Double-click on the employee's name.
  4. Click the Payroll Info tab.
  5. Under the Earnings box, add the payroll item Reimbursement.
  6. Then, click OK.

You can check out this article for more information: https://community.intuit.com/articles/1436887.

 

Additionally, you must fix reporting forms if you already filed them with your state agency and update the records. To do that, you may resubmit a corrected form, or consult your state agency if the taxes has been paid.

 

This information should provide you information to reimburse overwithheld taxes for your employee. Let me know if you're able to do so and if you have other questions, just leave a reply below. I'm always here to answer. Thanks for dropping by the Community. 

Frequent Explorer *

Re: MI-Obligation Assessment

You have been very helpful, thank you.  One more question, how will this effect the employee's W-2's?

6 Comments
QuickBooks Team

Re: MI-Obligation Assessment

Hello there, @Cedarrun.

 

Thanks for posting your concern in the Community space. I can help you correct the error you aren't catching with the MI-Obligation Assessment Tax withholding.

 

You'll need to make a payroll adjustment to record and correct your previous tax withholding. This way, you'll also be able to file correct filing forms. First, run the Payroll Summary report to get the amount on the payroll item that needs adjustment.


Here's how:

  1. Go to Reports menu.
  2. Select Employees and Payroll.
  3. Click Payroll Summary.
  4. Set the date range.
  5. Click Refresh.

After which, create the liability adjustment:

  1. Go to Employees menu.
  2. Select Payroll Taxes and Liabilities.
  3. Click Adjust Payroll Liabilities.
  4. Supply Date and Effective Date.
  5. Choose between Company and Employee adjustment.
  6. In the Taxes and Liabilities table, enter all necessary information.
  7. Then, click the Accounts Affected button to select where this adjustment will affect.
  8. Click OK.
  9. In the adjustment window, click OK to save adjustment.

For more information and reminders in creating a payroll liability adjustment, just refer to this article: https://community.intuit.com/articles/1437271.

 

That should let you adjust your MI Obligation Assessment tax. Let me know how things go once you've tried the steps. I'll be around if you need help. Have a nice day!

Frequent Explorer *

Re: MI-Obligation Assessment

Thank you that helped..!!  One more question, how do the employee get reimburse for the taxes that was taken out of them?  Do I right them a check?

QuickBooks Team

Re: MI-Obligation Assessment

Thanks for the prompt reply, @Cedarrun.

 

I appreciate you getting in touch again even though I forgot to include this earlier on my post. However, I have some information that should help you record a reimbursement for the employee you overwithheld taxes.

 

Yes, in case the employee demands an immediate refund, you may release a manual check as reimbursement. Make sure to use a payroll expense account since this is an expense made to your employee.

 

On the other hand, QuickBooks Desktop automatically enters the adjustments for these items, but does not correct the net amounts to match the original paycheck. To give your employee a reimbursement, on the employee's next paycheck, create a payroll item for tax adjustment to either collect or refund the money to the employee.

 

To add payroll Item:

  1. Go to Lists at the top menu bar.
  2. Select Payroll Item List.
  3. Click the drop-down arrow for Payroll Item.
  4. Select New.
  5. Choose Custom Setup, and click Next.
  6. Select Wage, and click Next.
  7. Select the wage type, and click Next.
  8. Name the payroll item as Reimbursement, and click Next.
  9. Select the tracking account.
  10. Then, click Finish.

Then, you can add the new payroll item to the employee's setup so it'll automatically show when creating a paycheck.

 

Here's how:

  1. Go to Employees at the top menu bar.
  2. Select Employee Center.
  3. Double-click on the employee's name.
  4. Click the Payroll Info tab.
  5. Under the Earnings box, add the payroll item Reimbursement.
  6. Then, click OK.

You can check out this article for more information: https://community.intuit.com/articles/1436887.

 

Additionally, you must fix reporting forms if you already filed them with your state agency and update the records. To do that, you may resubmit a corrected form, or consult your state agency if the taxes has been paid.

 

This information should provide you information to reimburse overwithheld taxes for your employee. Let me know if you're able to do so and if you have other questions, just leave a reply below. I'm always here to answer. Thanks for dropping by the Community. 

Frequent Explorer *

Re: MI-Obligation Assessment

You have been very helpful, thank you.  One more question, how will this effect the employee's W-2's?

Frequent Explorer *

Re: MI-Obligation Assessment

You have been helpful, thank you, One more question, how will this effect the employee W-2'S?

QuickBooks Team

Re: MI-Obligation Assessment

Thank you for getting back to us here in the Community, @Cedarrun.

 

Allow me to join the thread and help share some information about the Michigan Obligation Assessment tax.

 

The MI- Obligation Assessment tax is one of the state unemployment tax, therefore it won't affect the W-2 of the employee. The W-2 form only affects the Federal Income tax, Social Security, and Medicare.

 

For additional reference about the MI- Obligation Assessment tax, you may check this article and go to Unemployment Tax: Michigan Payroll Tax Compliance.

 

Also, for additional information about the W-2 form, you can check these articles: 

 

 

Let me know if you have any other payroll and taxes concerns by adding a comment below. Have a good one!

Need to get in touch?

Contact us