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katherinejoyceO
katherinejoyceO
June 17, 2021

Hi there, @bn1234. 

 

I'm here to help you get the state withholding taxes set up in QuickBooks.

 

Here's how to set up payroll items for state withholding:

 

  1. Click Custom Setup, then click Next.
  2. Go to State Tax, then click Next.
  3. Click the drop-down arrow to select your state, and then select State Withholding. Click Next.
  4. Enter the name of the payroll item, or use the name that QuickBooks Desktop automatically enters. Click Next.
  5. Enter the name of the agency this tax is paid to, and the account number. If you are still in the process of applying for an account, leave the Agency Name and Account Number fields blank.
  6. Select the correct liability account and click Next. If you left the Agency Name and Account Number fields blank, select Yes to the message that appears.
  7. This screen lets you verify the wage items used in calculating withholding. This is correct in most cases. If you are not sure, ask your accountant. Click Next.
  8. This screen lets you verify any pretax deductions that reduce wages for this tax. This is also correct in most cases. If you are not sure, ask your accountant. Click Finish.

 

For more insights, check out this article: Set up payroll items for new state taxes.

 

Here's an article that you can read for more details about accessing your state agency website: Payroll Tax Compliance Links.

 

Thanks for coming in today and feel free to post again if you have other questions. Take care.

 

    B
    bn1234Author
    June 17, 2021

    what if I already have it set up? it wont let me create a new one and I do not want to mess anything up! I have already done Bank Recs through May.

    M
    Mich_S
    June 17, 2021

    Thank you for reaching out to us, @bn1234.

     

    I recommend you create a liability adjustment. However, to avoid any discrepancies, it would still require an accountant's guidance since the account is already reconciled.

     

    Here's how to create an adjustment:

     

    1. Run a Payroll Liability Balances report and check on the balances that exist in the report,
    2. Select the Reports menu.
    3. Choose Employees and Payroll. Then, select Payroll Liability Balances.
    4. Open the 'Write Check' or 'Bill Payment' originally used to record the liability payment, copy down the details of the payment, and then delete it.
    5. Record the liability check correctly through Create Custom Liability Payments or Pay Scheduled Liabilities.

    For more information, please feel free to review this article: Payroll Liability and/or Balance Sheet Report shows incorrect amounts for payroll liabilities.

     

    You're always welcome to post. Have a wonderful day ahead!

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