Employee payroll deduction omission - how to correct

Hello there, winters111.

I've got the steps to ensure that WA Cares is added as a standard payroll deduction for your employee. Then. you're able to deduct the total amount due for this from the next payroll in QuickBooks Desktop.

To start with, I recommend making sure to set up the WA - Cares deduction item on your end.

Here's how:

1. Navigate to Lists, then Payroll Item List.
2. Choose the Payroll Item dropdown arrow, then New.
3. Select Custom Setup, then click Next.
4. Click Deduction, then Next.
5. Enter the name of the deduction, and select Next.
6. If applicable, select the name of the plan administrator (or add it), and the account number. Then select Next.
7. Choose the applicable Tax tracking type. Select None if the deduction is after-tax. 
8. Click Next three times.
9. Enter the rate and limit fields blank unless these apply to all of your employees. 
10. Click Finish.

You can refer to this article to see further instructions on how to manage this in your QBDT: Set up Washington Cares Fund payroll tax.

After that, you need to add the created item to the employee profile. You can follow these steps:

1. Choose Employees, then Employee Center.
2. Select your employee.
3. Click ✎, then select Payroll Info.
4. From Additions, Deductions, and Company Contributions, add the deduction item.
5. Enter the amount per period and a limit if applicable.
6. Click OK.

Once done, you have to create a liability adjustment for the employee. This helps correct any errors or discrepancies in the calculation or allocation of payroll liabilities.

Lastly, create another deduction item to collect the total amount due. Then, set the Tax Tracking Type to None. You will then manually include this item in your next payroll.

In case you need steps on how you can run a specific report to quick view your payroll totals, including employee taxes and contributions, you can read this article: Create a payroll summary report in QuickBooks.

Feel free to add a comment below if you have further questions about adding WA Cares to your employees. I'll be glad to help further, winters111. Have a good one!