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Pavlo Grish
September 16, 2022
Question

Credit Statement from Washingtion state

  • September 16, 2022
  • 1 reply
  • 0 views

I got a letter from WA state about credit for overpaid liabilities from the employment security department. How do I pass this information up to QB payroll so next quarter, the credit would be applied? 

Thanks, Team. 

1 reply

G
GebelAlainaM
September 16, 2022

Nice to see you, @Pavlo. I'll be glad to share information and steps on how a liability overpayment can be applied as a credit.

 

Beforehand, please get in touch with your accountant to consult which account to select so that the credit will be correctly applied to your tax forms. Talking to your accountant will also be a great way to avoid messing up your account. Since they know what's best for your business and know how to keep your books accurate.

 

After you talked to your accountant, you can follow the steps provided below:

 

  1. Create a liability check.
  2. Click the Expenses tab and choose the account where you want to apply for the credit.
  3. Type in the amount of the credit (only up to the amount of the check) as a negative figure in the Amount field.
  4. Enter an explanation of the transaction in the memo field.
  5. Select the Recalculate button to lower the amount of the check by the amount of the credit. If there is a credit balance remaining, you can apply it to the next period by repeating steps 1 through 4.

I've also added this article for a fix in case you enter incorrect payroll liabilities: Adjust payroll liabilities in QuickBooks Desktop Payroll.

 

For future reference, this article covers all the steps on how to handle overpayment in payroll liabilities: Record a payroll liability refund check.

 

I'll be around if you need more help managing your payroll taxes. Take care!

P
Pavlo GrishAuthor
September 16, 2022

My QuickBooks Payroll service automatically files my unemployment information with the state of Washington; I thought I needed to pass it up to QBP so they would adjust the amount. 

Please let me know. 

 

L
LeizylM
September 16, 2022

Thank you for joining the thread, Pavlo Grish.

 

Allow me to share some details on how to correct your SUI calculations in QuickBooks Desktop (QBDT) Payroll. 

 

You can create a liability adjustment to fix your unemployment taxes in QuickBooks. Before that, make sure to update your SUI tax rate first.

 

Here's how:

 

  1. Go to the Lists menu and select Payroll Item List.
  2. Double-click [state abbreviation] - Unemployment Company.
  3. Click Next until you reach the page “Company tax rates”.
  4. Enter the correct rates for each quarter.
  5. Select Next, then Finish.

 

Once done, the data on your report should show the liability adjustments you entered and should have corrected the employee's quarter or year-to-date payroll data.

 

For further details, please see this article: Entering wage base and tax adjustment to correct employee's quarter (qtd) or year to date (ytd) tota....

 

In case you enter an inaccurate State Unemployment (SUI) or withholding (SIT), here's an article you can use to fix it: Troubleshoot incorrect state unemployment (SUI) or withholding (SIT) on paychecks

 

Keep me posted if you have further concerns with your state unemployment tax calculations. I'll be here to assist you. Keep safe always.

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