In this blog, we are going to discuss how to use a liability adjustment to correct employees’ year-to-date (YTD) or quarter-to-date (QTD) payroll info in QuickBooks Desktop Payroll with the help of QuickBooks Desktop Payroll Support Number.
User can use a liability adjustment to fix them, when your payroll liabilities are incorrect.
Liability adjustments include company contributions, employee additions, and deductions.
We are here with the common reasons we use liability adjustments:
- You can fix a payroll item or a company contribution item with the wrong tax tracking type.
- You can correct YTD wages, deduction amounts, or addition amounts for an employee.
- You can change the amount for company contribution items such as HSA or 401(k) company match.
Adjusting payroll liabilities can be tricky. If you are unsure of what step to take, always consult an accountant/tax adviser for assistance.
In case, if you use QuickBooks Desktop Payroll Assisted, and need to make an adjustment for a previously filed tax form or payment, contact us before making any changes.
Step 1: You can find payroll discrepancies.
- You can run a payroll check-up. In case, if you need to run a payroll check-up for a previous year, then you must change your computer’s system date to the last day of that year.
- In case, if you want to run a payroll summary report for the month/quarter, then you need to adjust. Take note of the amount of the Payroll Items that need adjustments.
Step 2: You can adjust your payroll liabilities.
- First, navigate to the Employees, click & select Payroll Taxes & Liabilities, then select Adjust Payroll Liabilities.
- Next, click & select the last paycheck date of the affected month or quarter.
- In the Adjustment is for, select:
- Employee Adjustment if the item you’re adjusting is a company-paid item. This will update the YTD info reported in both federal and state forms. Then choose the employee’s name.
- Company Adjustment to correct the balance from Payroll Center and Payroll Liability balances report.
- Click & select the payroll item you want to adjust under the Item Name column.
- Next, type the Amount of the adjustment.
- If the item is under-withheld, enter a positive amount to increase.
- If the item is over-withheld, enter a negative amount to decrease.
- For employee adjustments, if you need to make a wage base adjustment enter the amount under Income Subject to Tax column.
- Type a note about the adjustment for reference under memo.
- Click & select Accounts Affected, then select OK.
- Click & 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.
- Click & select Affect liability and expense accounts to enter an adjusting transaction in the liability and expense accounts.
- After that, repeat for other employees if needed, then click & select OK.
Step 3: You can check if the liabilities are updated
- First, you can run the payroll summary report again to check if everything is correct.
- Next, you need to run the payroll liability balances report to check if the amounts to be paid are correct.
Step 4: (Optional) you can correct a previously paid payroll liability check
In case, if you have paid the liability and need to make corrections, then you need to edit the liability check to reflect the change.
- First of all, navigate to Banking, then select Use Register.
- Next, click & select the register you use for payroll, then OK.
- Click on right of the Liability Check, and then select Edit Liability Check.
- You need to update the amount under the Payroll Liabilities column, then select Recalculate.
- After that, click & select Save & Close, then select Yes.
We believe that the above given information will be helpful for users to know how to Adjust payroll liabilities in QuickBooks Desktop Payroll with the help of QuickBooks Desktop Payroll Support Number. However, if you come across with any issue then immediately get in touch with experts via call or live chat via visiting our website www.quickbooksupport.net.