Welcome to the Community, @hrhmwh. Yes, you'll need to use a liability adjustment to correct overdeducted wage garnishment.
Here's how:
- In the Employees menu, select the Payroll Taxes and Liabilities, then click Adjust Payroll Liabilities.
- Use these tips to help complete the fields.
- Use the same date as the last paycheck of the affected quarter. Use today's date if you’re working on the current quarter.
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- The Effective Date is used to calculate amounts on your 940 and 941 forms as well as the Payroll Liability Balances Report.
3. Select Employee Adjustment. It will update the YTD info reported on the employee W-2 form.
4. Select the employee.
5. Complete the Taxes and Liabilities fields.
6. Select Accounts Affected and then OK.
- Select Do not affect accounts to leave balances unchanged for the liability and expense accounts. The adjustment will only change the year-to-date amounts on your payroll reports.
- Select Affect liability and expense accounts to enter an adjusting transaction in the liability and expense accounts.
For more detailed steps, refer to this article: Adjust payroll liabilities in QuickBooks Desktop.
I'd also suggest you contact your accountant for further assistance and to make sure your books are accurate.
Let me know if you have additional concerns, @hrhmwh. I'm always around here to help.
