Skip to main content
D
Deadwood Al
July 2, 2024
Question

Need to correct liability GL (Payroll item)

  • July 2, 2024
  • 1 reply
  • 0 views

One of the state unemployment/reemployment assistance GL accounts generated an over-accrual of liability ... the percentage was .05 instead of .0005. This did NOT affect any withholding from the employee, only indicating that the liability owed to the state was significantly higher than what it should have been. When preparing the state reports, the error was discovered and the percentage was fixed. The amount actually paid to the state was correct.

 

I'm thinking that, since the employees pay was not impacted in any way, only the GL needs to be corrected with offset to the company payroll expense, but I'm asking just in case I'm missing something going on in the background. I have reports showing the original accrual and the "should have been" amounts that are used to calculate the correcting GL adjustment. Am I missing anything that should change my plan?

 

As always, thanks in advance.

1 reply

M
Maybelle_S
July 2, 2024

I appreciate you bringing this issue to our attention regarding the over-accrual of liability in the state unemployment or reemployment assistance General Ledger (GL) account, Deadwood. Rest assured, we are taking immediate steps to rectify this issue.

 

In QuickBooks Desktop (QBDT), we can adjust payroll liabilities if they are incorrect. 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

 

Here's how:

 

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

 

After that, run the Payroll Summary report to check if everything is correct. Then, review the Payroll Liability Balances report to verify accuracy.

 

For more details, you can check these links:

 

 

If you want to pull up various payroll reports in the future to see a glimpse of your payroll tasks, you can check out this article: Run payroll reports.

 

You're always welcome in the Community should you need further assistance managing payroll tax liabilities. We're committed to offering ongoing support. Take care.

Terms & ConditionsAccessibility statement