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steve-riverace
May 22, 2021
Question

Can I edit the QB calculated Soc Sec and Medicare company values?

  • May 22, 2021
  • 1 reply
  • 0 views
I am importing my company file from QB Desktop wit h payroll to QB Online with payroll. It asked me about pay dates and totals so far this quarter. It appears to have calculated the company Soc Sec and Medicare values wrong (don't match what was actually on the pay stub and deposited). Now QB thinks I have an upcoming 941 payment for the period I already paid but for the wrong amount.

1 reply

MichelleBh
MichelleBh
May 23, 2021

I’m here to help you every step of the way, @steve-riverace.

 

Let me give you some information about converting QuickBooks Desktop (QBDT) Payroll to QuickBooks Online Payroll (QBOP). 

 

When you convert the QBDT Payroll data to QBOP some payroll information doesn't transfer because they have different features. Considering the following: 

 

  • Payroll item breakdown and employee year-to-date numbers.
  • Liability refunds, adjustment transactions, and opening balance transactions that affect accounts convert to journal entries.
  • Imports the current year's paycheck information as lump sums.

 

You may refer to this article for more knowledge: What to expect when you switch from QuickBooks Desktop to QuickBooks Online.

 

To resolve your Social Security (SS) and Medicare amount, you'll need to complete your QBOP setup. This way, the figures of both deductions will match. 

 

Here's how: 

 

  1. Go to the Employees tab from the left pane.
  2. Switch to Yes to the employee who received a paycheck this year on the Paid in [Year] page. 
  3. Click Complete payroll set up to verify your year-to-date payroll totals and employee info. 
  4. Complete your business information and click Continue. 
  5. Follow the on-screen instructions to override the SS and Medicare amount. 

 

For the complete instructions, visit this page: What to do after converting from QuickBooks Desktop for Windows or Mac to QuickBooks Online.

 

In regards to your upcoming 941 payment, I'd recommend manually enter the historical tax payments. Then, mark them as paid so your taxes are accurate. Let me show you how: 

 

  1. Go to the Taxes tab, then Payroll Tax.
  2. Click the Prior tax history and tap Add Payment.
  3. Pick a tax type and liability period in the field. 
  4. Enter the Payment Date, Check Number, Notes, and Tax Item Amounts. 
  5. Tap OK.
  6. On the Taxes page, choose Mark as paid, and select Yes, mark paid. 

 

After recording, go back to the Payroll Tax Center page, then select the View tax payments you have made option. This to make sure the taxes are recorded accordingly. You may refer to this article for additional details: Recording prior tax payments.

 

Additionally, for those payroll transactions that are not imported to QBO, you'll want to manually enter them into the system. This way, your employees' Year-to-Date are accurate. After that, I'd suggest running payroll reports and customize them to show the specific details. 
 

Lastly, since your company is all set up, check out our QBO Getting started guide. This page contains the How Do I question about your account. 

 

Please know that you're always welcome to comment below if you have other concerns about managing your payroll in QBO. I'm just around to help. Take care.

S
steve-riveraceAuthor
May 24, 2021

Thank you, that was helpful to move things along.

However, now that the payroll tax payments are accurate, I cannot run a payroll. It says I have overpaid both Federal tax (941/944) as well as Federal unemployment (940) by the amounts I paid this quarter.

Additionally I have no payroll to-date numbers in QB Online - it's like I haven't done any payroll this year - only paid the tax.

M
mv32
May 24, 2021

Let me clarify a few things about recording prior tax payments, @steve-riverace.

 

Make sure that the penalties and interest paid to the tax agencies aren't recorded with the tax due. This will result in an overpayment. If this is the case, you can edit the prior payment then create the penalties and interest manually as an expense.

 

Also, ensure that the entered tax rate, liability period on tax payment, and historical tax payments are correct.

 

Here's how to edit a prior tax payment:

  1. Select the Taxes menu and then Payroll Tax, choose Tax payment history or View Tax Payments you have made (QuickBooks Online Enhanced Payroll).
  2. Choose a Date Range and then select Custom.
  3. Hit Run Report.
  4. Choose the payment you want to change then select Edit.
  5. Make sure the start date and end date are correct edit the necessary changes, then choose OK.

 

Then you can start running your payroll.

 

I've added some articles that you can reference in the future to resolve overpayment and underpayment when you receive a tax notice from the IRS or state agency:

 

Drop me a response below if there are other things you need help with running payroll. I'm always available to help.

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