Thank you for visiting the QuickBooks Community, donnakristine. Let me share some steps to ensure you can correct/change the taxable wages between ETT and UI.
I recommend using a wage base adjustment to correct an employee's year-to-date (ytd) information (wage base and tax amount) for flat rate taxes such as FUTA, Social Security, Medicare, and SUI.
Beforehand, you can read the details below to see the common scenarios that can be fixed by doing a wage base adjustment in QuickBooks Desktop:
- You changed the tax item employee is subject to in the middle of the year, causing incorrect wage and tax amounts on tax forms.
- The employee's total wage base has exceeded the annual limit and you need to correct it.
- You changed the default tax settings in the payroll item set up causing an error in tax calculation.
- You changed the rate for a tax item in the middle of a filing quarter or year and need to apply this change retroactively.
Then, to make a wage base adjustment, you can start following the steps below.
- Make a payroll detail review report.
- Customize your report to display only the affected date, employees, and tax items.
- Confirm that tax amounts are calculated correctly based on wage limit and tax rate.
- From the report, determine if you want to decrease or increase the wage base, tax amount, and income subject to tax, and by what amount.
- Select the Employees menu. Then, choose Payroll Taxes and Liabilities and Adjust Payroll Liabilities. The Liability Adjustment window will open.
- Choose the correct Effective Date. Then, Click Employee Adjustment.
- Select the affected employee from the drop-down arrow. Then, click the Item Name column and select the payroll or tax item you want to adjust from the drop-down list under the Taxes and Liabilities section.
After that, you can open this article to view further steps on how to finish the process and additional details: Entering wage base and tax adjustment to correct employee's quarter (qtd) or year to date (ytd) tota....
Lastly, you may refer to this article to see the various information on wage bases and limits: Understand payroll tax wage bases and limits.
Let me know if you need further assistance with this tax. I'm always around to provide answers and clarifications to your questions. Have a great day ahead and take care.
