I've received credit for a quarterly tax; is there a way to enter this as a credit for next quarters taxes?
Hello there, @kskove.
Thank you for posting in the QuickBooks Community. I'd be happy to help share some information about how to enter the credit on the next quarter taxes.
If you're referring to a payroll tax refund, you have an option to apply this credit to the next quarterly taxes. If you've already paid the tax liability on the previous quarter, you need to enter first a prior tax payment so that it shows as an overpayment amount in QuickBooks.
When QuickBooks detects that you've overpaid your taxes, it'll give you the option to apply the overpayment to a future tax liability period.
Here's how to record the prior tax payment:
After that, apply a liability overpayment as a credit to payroll tax liabilities.
Take note that some state agencies don't approve of applying the overpayment to a future tax liability. I'd suggest you contact your state's tax agency for verification.
For more details, I've attached some articles for your reference:
Feel free to drop a comment below if you have any other questions about applying a credit for the next quarter taxes. I'll be happy to help you further. Have a great day.
I have here a helpful article that will walk you through on recording tax credit in the desktop version of QuickBooks: https://community.intuit.com/articles/1763418-apply-your-payroll-liability-overpayment-as-a-credit.
Please visit us again if you need anything else with QuickBooks. Have a great day!
Hello there, @chris6.
Thanks for getting back to us and going through the answer given by my colleague, MikiD. Allow me to join in and help you more in electronically paying the taxes using the credit:
That should help you epay the liability, chris6.
Please know that I'm still here to help you more if you have other payroll questions. Just drop a comment below or mention my name. Wishing you all the best!
Forgive me but I can't seem to understand this. I can't enter payroll items (Federal Withholding, SDI, FICA, etc.) in the expense side of the payments. Am I simply crediting back the payroll liabilities GL account on the expense side of the check?
Hi there, @chris6.
Thanks for getting back to us. Allow me to chime in for a moment and help make sure that you can apply payroll liability overpayment as a credit in QuickBooks Desktop (QBDT).
As mentioned by my colleague @HoneyLynn_G, you need to enter/select a payroll tax account where you want to apply the credit instead of the payroll items. Once applied and you have a credit balance remaining, you can add it to the next period.
For your reference, you can also check out this article for further guidance: Apply your payroll liability overpayment as a credit.
That should answer your concern for today. Please let me know in the comment section if you have any follow-up questions. Take care and have a good one.
You are correct that you will be crediting the Liability account as this will increase and offset the tax payment made previously.
As my colleague @HoneyLynn_G provided, that is a Tax Liability payment transaction type but the tax credit is entered as negative value, this only means the Transaction Journal will be on the Credit side.
Feel free to let us know if you need further assistance.
I have a question related to resolving payroll tax overpayments. We had 5 to clear out - 4 of them resolved and cleared out (per your instructions in this thread) but the other one is "stuck" in the "Pay Taxes" screen even though it's been resolved. How do I get rid of this?? See attached screenshot. There is no longer a "Resolve Overpayment" option and I can figure out no way of clearing it.
Hello there, mkolagirl.
I appreciate the screenshot you've provided. Let me share information about tax payments showing overdue in QuickBooks Online (QBO).
This issue with Payroll Task showing overdue is an ongoing issue that our engineers are closely working on right now.
For now, I'd suggest calling our Customer Care Team. I suggest giving us a quick call so we can add your company information to the list of affected users. This way, updates will be sent to you via email regarding the progress of the investigation.
Here's how you reach them:
As soon as the fix has been released for this, we will communicate that in a resolution email.
For future reference, you might find this article helpful: Resolve a tax overpayment.
Please know that you're always welcome to post anytime you need help with payroll. I'm always here to help.
This works to eliminate the Liability payment, which was the first objective. However, the Liability balances window is adjusted by the same amount. Do I need to enter now a liability balance adjustment (without affecting accounts)? Seems like a cumbersome way to just delete a liability payment that should never be there in the first place. A/P balances are ok.
It's nice to have you in the thread, @cericha. I'd be happy to lend a hand with this liability payment.
To help ensure that you receive the best assistance, could you please let me know which version of QuickBooks that you're using? This thread has discussions on a few different products, and I want to ensure that you get the right resolution.
I'll be keeping an eye on this thread and look forward to assisting further. Take care.
Thanks for your response. I am using Quickbooks Enterprise hosted locally.
The problem is due to a rate change in our state unemployment taxes that was issued by the state in mid Q2, but that was retroactive to the beginning of the year. I entered the liability adjustments for Q1 and Q2. Since our rate was higher when we paid Q1, they issued a credit.
At the end of Q2 the system issued a Payroll Liability Check which is showing overdue in the Payroll Center Window. Liability balances and A/P balances are all accurate. However, Payroll center does not recognize the credit.
Basically, I am looking for a way to get rid of the overdue check. I have tried several ways including paying the check with an offsetting expense payment (making the check 0.00), but then the Payroll liabilities get out of wack. If I try to issue a Payroll liability adjustment, then it puts the check back in the Payroll Center.
Your help will be greatly appreciated.
Thanks for letting me know that you're using the Enterprise version and sharing the on-point details about your concern, @cericha.
Changing your State Unemployment Insurance (SUI) rate in the program automatically adjusts your liability amounts for Q1 and Q2. It could be the liabilities were paid outside QuickBooks but were not entered in the software, that's why the system doesn't recognize the credit.
I've got some steps to help you get rid of the overdue check from the Payroll Center window. This can be done by entering a prior tax payment for Q2 to mark it as paid. Then, choose Do not affect accounts since your liability balances and A/P balances are already accurate. Let me guide you how.
The screenshot below shows you the fourth to eight steps. For more information, see the The Liabilities were paid but never entered into Desktop section through this article: Scheduled Liabilities Payroll Show As Overdue or In Red.
January is one of the most important months for every business, just like yours. You can visit this website: Year-end Checklist. This link contains essential dates and tasks to help you start and complete the year-end payroll process.
I'm just a post away if you need anything else. Have a good day, @cericha.
The problem with this solution is that my payroll liability balances are ok and this payment will actually reduce my liability balance. The overpayment was made on Q1 through payroll center and as stated before, all balances are ok at the end of Q2 and Q3 - payables and the payroll liability balance both match. Creating this payment will remove the overdue payment from my Payroll Center window, but will also affect (reduce) my liability balance.
Any other suggestions?
Since your liability balances are already accurate, it's possible that the payments for Q1-Q3 cover an incorrect period. Let's open those transactions and verify the dates affected.
However, if all the checks are showing the right details, I recommend contacting our Payroll Team for further assistance. They can perform a screen-sharing session to see where the issue is coming from.
Here's how to get in touch with our phone agents:
I’m adding this article as your guide: Contact the QuickBooks desktop customer support team.
Please let me know how everything goes and if there's anything else you need. I'm here to keep helping. Have a good one!
I reviewed the Q1 payment and the amount and time frame ( 1/1/19-3/31/19) was correct. As pointed out before, the amount was higher than the current balance due to the liability adjustments that I did to adjust for the new tax rate.
However, I decided to open the time frame of the payment and I changed it to cover Q1-Q3 and that did the trick. The balances are all accurate and the overdue payments are gone from the Payroll Center window. I assume from this that QB does not apply your over payment unless you expressly tell it to apply that Q1 check to Q2 and Q3 by modifying the Period window.
Thanks a lot for your help and everybody else that contributed. This community is great!!!!
You're welcome, @cericha.
I'm glad that opening the time frame of the payment fixed the issue.
Let me add this article about applying an overpayment for future reference: Apply your payroll liability overpayment as a credit.
Reach out to the Community again if you need anything else. I'm always here and ready to help. Have a fantastic day!