Every year, about 30% of small business owners overpay their taxes to state and federal tax authorities due to inaccurate tax payment calculations or fear of IRS penalties. It is possible that if you are an employer who has overpaid payroll tax liabilities using QuickBooks, you will want to have the overpaid amount debited as payroll tax liabilities and the overpayment rectified in the QuickBooks Company file. It is explained in detail in this article how to adjust payroll liabilities in QuickBooks.
Steps to adjust payroll liabilities in QuickBooks
As Mentioned below we have discussed some of the best steps to adjust payroll liabilities in Quickbooks. Follow the steps for more info
- First of all, go to the Employees > Payroll Taxes and Liabilities > Adjust payroll liabilities
- Use the same date as the affected quarter's paycheck. If you're working on a recent quarter, use today's date.
- Decide which type of adjustment you have to make- an employee or a corporation.
- Pick an employee.
Complete all tax and liability fields by:
- Select the item name to change.
- Enter the adjustment amount. Use a positive number to increase and a negative number to decrease.
- The wage basis is not required, even when a user overrides a tax amount.
- When adjusting Wage Base, only use Taxable Income.
- You can also include a note about the adjustment in the Memo field.
- Select Affected Accounts and click OK.
- Repeat the process for any additional employees, and then click OK.
That's how you can adjust payroll liabilities in QuickBooks.
If you have any further queries about adjusting payroll liabilities in QuickBooks Payroll, reach out to the Contact Payroll team. QuickBooks Payroll Support experts will help you to understand this particular topic better. Keep in touch with all QuickBooks-related solutions on our website, we would love to help you.