payroll tax adjustments

Christies_Photo · ‎February 02, 2022

Hi there,

We use QuickBooks Desktop. We process our payroll through QB, but make our own tax payments. Early in 2021, the previous bookkeeper paid the 940 amounts along with the 941 amounts. We caught the error and received the over payment in the correct quarter. But now at the end of the year, the 940 amounts are lower than actual. The payments that were made for 940 we marked paid, but really were not. So now the amount due for 940 is much lower than the actual. I tried creating a journal entry, but it did not work. I have researched and found that I am supposed to make an adjustment in the payroll section. How do I adjust this? Thank you!

JoesemM · ‎February 02, 2022

I'm here to make sure that you can make payroll adjustments, @Christies_Photo.

I appreciate you for researching the solution to get this resolved. To sort this out, you'll have to delete first the journal entry before creating a payroll adjustment to avoid any issues. Then, you can now make a payroll adjustment, just go to the Employees menu select Payroll Taxes and Liabilities.

Here's how:

Open your QuickBooks Desktop company file.
Go to the Employees menu, then select Payroll Taxes and Liabilities.
Select Adjust Payroll Liabilities.
Add the necessary dates, then select Employee Adjustment.
Select the employee, then complete the taxes and liabilities field.
Select the Accounts Affected, then click OK.
Repeat for the other employees, then click OK.

For details, follow this article: Adjust payroll liabilities in QuickBooks Desktop.

Just in case you need someone to guide you with doing the adjustments, I would recommend contacting our Support Team again. They can provide more help with correcting payroll items. Refer to this article to learn more about our contact options and support availability: Contact QuickBooks Desktop support.

For additional tips on how to prepare the 940 forms, you can open these articles and check out the steps under the Prepare Form 941-X section:

Should you have any follow-up questions or concerns, don't hesitate to post again here in the Community or leave a comment on this post. Take care and have a good one, @Christies_Photo.

View solution in original post

JoesemM · ‎February 02, 2022

I'm here to make sure that you can make payroll adjustments, @Christies_Photo.

I appreciate you for researching the solution to get this resolved. To sort this out, you'll have to delete first the journal entry before creating a payroll adjustment to avoid any issues. Then, you can now make a payroll adjustment, just go to the Employees menu select Payroll Taxes and Liabilities.

Here's how:

Open your QuickBooks Desktop company file.
Go to the Employees menu, then select Payroll Taxes and Liabilities.
Select Adjust Payroll Liabilities.
Add the necessary dates, then select Employee Adjustment.
Select the employee, then complete the taxes and liabilities field.
Select the Accounts Affected, then click OK.
Repeat for the other employees, then click OK.

For details, follow this article: Adjust payroll liabilities in QuickBooks Desktop.

Just in case you need someone to guide you with doing the adjustments, I would recommend contacting our Support Team again. They can provide more help with correcting payroll items. Refer to this article to learn more about our contact options and support availability: Contact QuickBooks Desktop support.

For additional tips on how to prepare the 940 forms, you can open these articles and check out the steps under the Prepare Form 941-X section:

Should you have any follow-up questions or concerns, don't hesitate to post again here in the Community or leave a comment on this post. Take care and have a good one, @Christies_Photo.

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