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Enhanced Payroll Desktop

Forum|Forum|3 years ago
April 12, 2023
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A manual check was printed for an employee outside of the payroll system. Employee taxes were not withheld and the employer taxes were not calculated or recorded. How can I correct this payment so that it shows as payroll and the proper taxes are withheld?

QuickBooks Desktop Payroll

Best answer by BigRedConsulting

RE: How can I correct this payment so that it shows as payroll and the proper taxes are withheld?

You can do this by creating a gross-up paycheck:

1 - If the check was recorded in QB as a standard check, delete or void it.

2 - Create a new paycheck for the employee. As you do, on the first slide of the create payroll process, click the employee name to open the Preview Paycheck window

3 - Then click the Enter net/Calculate gross checkbox and then enter enter the desired Check Amount as pictured below.

QuickBooks will respond by grossing up the paycheck from the net amount you enter, as pictured:

Note that you have to use a Salary or Bonus type earnings item in the earnings table to do this.

C

ChristineJoieR

I can help you, @cld5. You can create a gross-up and enter the pay items. When you do this, you are partly paying the employee's taxes. Let me show you the way and get this done in QuickBooks Desktop.

Once an employee's salary is grossed-up, in this case, the employee will receive a pre-determined net amount. Thus, the money is withheld by the employer.

Here's how to gross up the employee's paycheck:

Select Employees, then Pay Employees.
Select Scheduled or Unscheduled Payroll.
Select your employee, then select Open Paycheck Detail.
Add an earnings item like salary or bonus with 0.00 amount.
Remove all non-earnings payroll items from the check.
Select Enter net/Calculate gross.
Enter the net pay amount.
Select Save & Close.
Run payroll as normal.

Moreover, please note that we should be careful when calculating a payroll gross-up. If you enter it incorrectly, your employee may owe money at tax filing time. I would also suggest reaching out or, you may want to consider asking your accountant if you have one.

Additionally, if you want to set up your payroll items, see the articles for further guidelines outlined in this article: Set up, change, or delete employee-paid payroll deductions.

Also, to confirm if the employee has an incorrect record, we need to check it under the wage base, then make a payroll liability adjustment for your taxes: Edit payroll items used on paychecks.

If you have any other questions, please let me know. I'm looking forward to hearing back from you.

BigRedConsulting

@ChristineJoieR RE: We can set up a deduction type for each employee in the Payroll item tab. Let me show you the way how to do it on QuickBooks Desktop.

Your answer doesn't appear to have anything to do with the customer's question. Did you copy/paste the wrong pat answer or just not read the question?

BigRedConsultingAnswer

RE: How can I correct this payment so that it shows as payroll and the proper taxes are withheld?

You can do this by creating a gross-up paycheck:

1 - If the check was recorded in QB as a standard check, delete or void it.

2 - Create a new paycheck for the employee. As you do, on the first slide of the create payroll process, click the employee name to open the Preview Paycheck window

3 - Then click the Enter net/Calculate gross checkbox and then enter enter the desired Check Amount as pictured below.

QuickBooks will respond by grossing up the paycheck from the net amount you enter, as pictured:

Note that you have to use a Salary or Bonus type earnings item in the earnings table to do this.

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