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Join nowFor the first Quarter of State Unemployment filing, we entered the rate before the end of last year and hoping all number can be calculated right. However, it was still wrong because Quickbook can not do "if #<#" figure. So basically, we suppose to go with a lower rate base on total unemployment we withheld. but by the time we needed to pay for the state 941, we could not change manually change the rate for the past quarter. We ended up paying the amount by check and manually entered the total number when we do "pay liabilities". Of course they shows a balance/overdue for that quarter. How can we get ride of that without messing up with the following quarter? Thanks.
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Hi there, NicoleFeng.
You can create a liability adjustment to correct the amount of state unemployment and remove the overdue amount as well. Here's how:
However, that would affect the amount for the succeeding quarter since QuickBooks calculates the amount on a year-to-date basis even if you're paying the state unemployment quarterly.
Although, the program has an auto-correct feature, which means it will try to catch up or stop calculating as soon as the annual limit is reached. It's one way of making sure that the total calculated amount for the entire year is correct.
More details about this process are discussed here: Adjust payroll liabilities in QuickBooks Desktop.
Don't hesitate to add a reply below if you have follow-up question. We're always here to help you sort it out.
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Hi there, NicoleFeng.
You can create a liability adjustment to correct the amount of state unemployment and remove the overdue amount as well. Here's how:
However, that would affect the amount for the succeeding quarter since QuickBooks calculates the amount on a year-to-date basis even if you're paying the state unemployment quarterly.
Although, the program has an auto-correct feature, which means it will try to catch up or stop calculating as soon as the annual limit is reached. It's one way of making sure that the total calculated amount for the entire year is correct.
More details about this process are discussed here: Adjust payroll liabilities in QuickBooks Desktop.
Don't hesitate to add a reply below if you have follow-up question. We're always here to help you sort it out.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Accept as solution"
Hi Jenop,
It ended up we double paid it. The Quickbook transaction went through, and we sent a check as well. So we have a credit. Which way do you think it will be better to fix? Refund or apply credit to future payment? Just to remind on this, the actual due amount did not match what quickbook generated (cause we set the wrong rate for the first quarter). Either way, how should we adjust Quickbook entry then? thanks
Hello there, NicoleFeng.
It would really depend on how you'd want to move forward. You can apply it as a credit to a payroll tax account. Before applying a tax credit, I'd suggest consulting your accountant first. This way, you'll be able to find out which account to select so the credit is correctly applied in your tax forms.
Then, we'll need to change the date and the period of the overpayment (liability check) to have accurate data of your quarterly reports. I'll show you how:
If you want to be refunded, please know that you'll still need to contact the IRS or state agency to get the actual refund. Additionally, we'll have to create a payroll liability refund check, which increases the liability balance since the liability balance became negative. Just make sure that you've already recorded the overpayment before doing it.
In case you'll need to get helpful insights on where you're business stands in terms of employee expenses, we can customize your payroll reports to view this information.
I'll be right here to continue helping if you have any other concerns or follow-up questions. Have a great rest of the day.