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Bargainbabelv
June 18, 2024
Question

Error on Paycheck

  • June 18, 2024
  • 1 reply
  • 0 views

Upon entering my payroll history when switching over from Desktop (Enhanced Payroll) to QBO, I found an error on the last round of paychecks I generated in Desktop. Under "Other Payroll Items", I should have entered an addition of uncollected credit card tips to an employee's check. However, I entered "Cash Advance" on the item name. If I unlock the check and try to change the item name to uncollected credit card tips, the taxes all change. How can I resolve this in both Desktop and QBO?

1 reply

M
MichaelaS
June 18, 2024

I appreciate the detailed information shared, @Bargainbabelv. I'd be glad to help you in correcting your payroll item setup.

 

Yes, the calculation will change since the tax tracking of both items is different. You can use a liability adjustment to correct the employee's information in QuickBooks Desktop (QBDT).

 

Here's how:

 

  1. Go to Employees, then Payroll Taxes and Liabilities. 
  2. Select Adjust Payroll Liabilities.
  3. Select the last paycheck date of the affected month or quarter in the Date and Effective Date fields.
  4. In the Adjustment is for section, select Employee Adjustment to correct your employee’s YTD info. Then, select the employee's name. Do this even if the item adjusted is company-paid.
  5. Under the Item Name column, select the payroll item you want to adjust. Enter the Amount of the adjustments. 
    • If the item is under-withheld, enter a positive amount to increase. 
    • If the item is over-withheld, enter a negative amount to decrease.
  6. Enter the amounts under the Income Subject to Tax column if you need to make a wage base adjustment. (Under Memo, enter a note about the adjustments for reference.)
  7. Select Accounts Affected, then OK.
    • Select Do not affect accounts to leave balances unchanged for the liability and expense accounts. The adjustments will only change the year-to-date amounts on your payroll reports.
    • Select Affect liability and expense accounts if you want the transaction to reflect in the liability and expense accounts.
  8. Select OK to close the Affect Accounts window.
  9. Select Next Adjustment if you have additional employees to enter an adjustment for. Otherwise, select OK to save the changes.

 

If you haven't created a paycheck in QuickBooks Online (QBO) yet, you can modify the pay history of the affected employee by going to the Payroll menu and selecting Overview to access the setup and pay history tasks. If paychecks have already been generated, you'll want to contact our Online Payroll support for guidance on adjusting your employee's payroll history.

 

Our support hours for QuickBooks Online Payroll Core are Monday to Friday, 6 AM to 6 PM PT, and QuickBooks Online Payroll Premium, Elite - any time, any day.

 

Additionally, you can visit this resource as a guide to knowing QBO usage: Getting Started in QuickBooks Online.

 

I'm always around to help with any other questions you have about managing payroll items. Have a good day ahead.

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