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HollyJ1
January 5, 2022
Question

No taxes held out on direct deposit paycheck issued last year

  • January 5, 2022
  • 1 reply
  • 0 views

I just discovered there weren't any taxes withheld on a direct deposit check I issued on Dec.15 of last year (2021).  I have no idea what happened, but now I don't know how to fix that problem.  I only caught it because I printed off the 941 for the quarter and it showed we owed extra taxes so I had to do some research.  The check prior to that one, and the one I issued on Jan. 1, were fine.  I would sure appreciate any help you could give me!  

1 reply

BigRedConsulting
BigRedConsulting
January 5, 2022

Create another paycheck for the employee for last year, perhaps on 12/31. Open the preview to see the details and enter 0.00 wages at the top of the check.  Also zero out any additions and deductions that appear.

 

If the straight-percentages taxes calculate an amount, then they are "out of balance" (there are more wages than the correct resulting taxes.)  Optionally, you can also add what would have been the correct amounts for Federal and State income taxes.

 

Then use an addition item set up with None as the tax tracking type to bring the net check from a negative number up to 0.00 and record it. That amount is what the employee owes you for the missing taxes.

 

Then extract that amount from the employee and deposit it, using the same account used on the item. Or, withhold it from future paycheck(s) using a net deduction, also with a tax tracking type of None and using the same account as the addition.

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