This would be an Error: "At this point, I need someone to confirm that if I enter the dates as listed on the liability of 12/28/18 - 1/4/19"
Start with the Actual Paycheck Date. A Paycheck in 2019 is Not Combined with paycheck amounts from 2018. That Liability Period should never overlap a Month, Quarter or Year end, depending on the Liability. So, for instance, SIMPLE IRA cannot Overlap 2018 and into 2019.
This doesn't affect W2; it is the Payment of the accrued liability. It is the Banking.
A Liability for 2018 paid in 2018 need to show "Period" for the date range of the Paychecks, and that is in 2018, for your specific example.
Here: FUTA for all of 2018 might not need to be paid until you file the 940, and you pay it on Jan 25. The Liability PERIOD is for Jan 1-Dec 31, 2018. That Banking date is Jan 25, 2019.
Never overlap PERIOD for Liability.
"I would like to also correct what ever the issue is that is causing the liability dates to be different than the pay period dates."
That is Your Misunderstanding. That is not what Liability Period ever means.
"I understand that liabilities are due when the pay check is cut but shouldn't the liability dates still match up with the pay period?"
No. It is matched to the Banking event = when Paychecks were issued, Because the Taxes related to the fact that someone Got Paid. Not when they worked or how many dates are included in the pay period. It's based on Paycheck Date. Not Pay Period.
"We have started paying a week behind in preparation to move to direct deposit. I'm not an accountant so not sure how the actually accounting aspect of these entries work."
Example:
You pay monthly by the 5th for the Pay Period of dates worked in the prior month. That means:
I work in Dec. You pay me in Jan. That is the First Check of the new year. Liability Period is Jan 5, 2019-Jan 5, 2019 for any Liability that is based on Monthly; or Jan 1-Jan 31, 2019 is the Same Concept. There was the one paydate = Jan 5. For a Quarterly Liability, this is Q1 of 2019.
Never delete any Paychecks; that won't solve anything and will just make things Worse.
