You can use a liability adjustment to correct your employees year-to-date (YTD) or quarter-to-date (QTD) payroll info in QuickBooks Desktop Payroll, tmarie2.
Here are the common reasons to make liability adjustments:
- Fix a payroll item with the wrong tax tracking type
- Correct YTD wages, taxes, and deduction items
- Change the amount for company contribution items such as HSA or 401(k) company match
To adjust your payroll liabilities:
- Go to Employees, the Payroll Taxes and Liabilities.
- Select Adjust Payroll Liabilities and choose the last paycheck date.
- Choose Employee Adjustment, select the employee, and pick the payroll item to adjust.
- Enter the adjustment amount and any necessary details.
- Choose whether to affect accounts, then save the changes.
Check out this article for detailed instructions: Adjust payroll liabilities in QuickBooks Desktop.
Once done, create your W-2c and W-3c in QuickBooks and print them on perforated paper only. Then, manually file the W-2c and W-3c with the Social Security Administration. Here's how:
1. Open QuickBooks Desktop and go to the Payroll Center under Employees.
2. Select the File Forms tab and choose Annual Form W-2c/W-3c to create a form.
3. Choose the employee's last name and select OK.
4. Review and edit the previously reported amounts for corrections.
5. Check the W-2c box and fill in the necessary details.
For a detailed process, read this article: Fix an incorrect W-2 and W-3 (See If you or your employee finds the mistake after you file your W-2s section).
Refer to this article to learn about entering totals for each pay type, deduction, and tax in QuickBooks: Enter paycheck totals for your W-2 employees.
You're always welcome to comment below if you have other inquiries about accomplishing other payroll tasks within the program. I'll get back to you promptly. Have a good one.
