Payroll Liabilities Adjustment in QuickBooks
A payroll item can be adjusted if it is found out that a payroll liability balance is incorrect and needs to be adjusted. Liability balance adjustments change the amounts that QuickBooks shows in the payroll reports. It is recommended that for Payroll liability adjustments not identified below, consult with your QuickBooks Trainer or QuickBooks Administrator. Be cautious if you are operating EnterpirseSuite edition , Call QuickBooks Enterprise Support number for getting help .
How To Enter Payroll Liabilities Adjustment In Quickbooks
Liability Adjustments On some occasions, an employer payroll item expense can be changed under the Company Summary section of the Paycheck transaction even if the employee’s paycheck was printed and given to the employee. For example: overstated or understated payroll expense amount, unnecessary FUTA tax charged, etc. Determine if payroll liability check needs to be voided.
✔ Open the employee’s paycheck transaction.
✔ Select Paycheck Detail button.
✔ Select unlock net pay.
✔ Change the employer’s amount for a specific payroll item.
✔ Save the transaction.
Scenario for Payroll Liability Adjustment
Scenario 1 Adjust the Employer’s Payroll Expense
A small portion from employer’s Medicare share exaggerated. The liability has not been paid. Open the appropriate employee’s paycheck transaction and follow the steps below:
✅ Choose the Paycheck Detail button.
✅ Go to Unlock Net Pay.
✅ Under Company Summary, adjust the employer’s Medicare tax amount.
✅ Select Ok.
✅ Save & Close.
Scenario 2 Adjust Employee’s Deduction
Paycheck is already cashed.
Suppose for instance medical insurance was carelessly withheld from the employee’s paycheck. The employee’s paycheck was distributed and cashed. $100.00 is owed to the employee. If the paycheck has been printed and distributed to the employee, do not clear the paycheck.
Alternatively create an appropriate liability adjustments and a refund check.
Scenario 3 Employer’s Payroll Liability Adjusted Carefully in the Liability Check Transaction
In this circumstance employer’s retirement liability originally was $50. Later on it was discovered by the bookkeeper that the liability check amount was $110.00. Instead of changing the employer’s amount in the paycheck transaction, the amount was changed in the liability check. Liability Check was mailed.
Scenario 4 Employee’s Social Security Tax was underpaid.
If the employee’s social security tax needs to be increased in next paycheck and if the paycheck occurs in the following payroll quarter then it will be adjusted in the next quarter. Once the paycheck is cashed, the employee’s social security tax cannot be adjusted. In order to report both the unpaid employee’s and employer’s social security tax as the employer’s social security tax. Employee will reimburse employer on next paycheck.
Get Help to Adjust Payroll Liabilities In QuickBooks
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