In response to the COVID-19 pandemic, my state has issued a refund of first quarter 2020 state unemployment taxes. If that quarter's taxes were not yet paid at the time, no tax would be due. If the tax had been paid already, that amount would be credited for the second quarter 2020, which was my case. How do I show the "refund" - even though I did not actually receive the funds, and how do I apply it in Quickbooks to my balance owed for the second quarter? Thank you!
I can help you in recording this transaction, @fishelec.
You can create a payroll liability refund check. This will increase the liability balance.
Here's how to enter a payroll liability check:
You can check this article for more information about it: Record a payroll liability refund check.
Let me know if there's anything that I can assist. I'm always here to help. Have a wonderful day!
Also, by using the Group with other Undeposited funds option, the amount shows in my Undeposited Funds account. Where do I make this "deposit" since it did not actually go into a bank account?
I'm here with some clarifications concerning payroll liability refund, @fishelec.
QuickBooks "holds" the refund in a special account named Undeposited Funds since the amount did not actually go into a bank. This works best when they hold the money they've collected for a while before they deposit it.
Also, after creating a payroll liability refund check, you'll have to enter a liability adjustment to reduce the liability. However, I recommend performing this on the advice of your accountant. You can also find an accountant if you need one.
Here's how to adjust payroll liabilities:
Then, you can check out our guide on running Payroll Summary report to make sure everything looks right.
Feel free to visit the Community again if you need help with QuickBooks. We're always here to help. Have a great day ahead.
I'm here to assist with your query, AdamWagnerConsulting.
I'm here to help guide you on how to adjust payroll liabilities in QuickBooks Online.
Here's how to do it:
Press Add Payment.
Choose Tax Type and Enter Liability Period.
Enter Payment Date, and then enter Check Number and Notes.
Create a Credit by entering a "Negative Amount"
Tap OK once done.
Once finished, Let's run Tax Liability Report to Once finished, Let's run Tax Liability Report to verify the adjustment was added to the payroll. For more details about the payroll liabilities report, you can check out this article: Payroll Tax Liability Report.
Keep in touch if you need any more assistance with this, or there's something else I can do for you. I've got your back. Have a good day.