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Non resident alien withholdings

Forum|Forum|5 years ago
September 8, 2020
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I paid an employee who is a non-resident alien (F-1 visa), but didn't know that social security, medicare, federal unemployment and state unemployment should not be taken out. The withholdings for that paycheck have been paid. How do I adjust the withholdings to credit the employee and the company for money taken that shouldn't have been? I tried changing the numbers on the next paycheck, but if I put in a positive number it automatically changes it to a negative. I am running QB Desktop Contractor 18.0. I had QB call me but got nowhere.

QuickBooks Desktop

Best answer by JeanG

Thank you katherinejoyceO, but that doesn't work since I have already paid the check and it has cleared the bank and the liabilities have been paid.

I was able to speak to a very knowledgeable QB employee today who stepped me through adjusting the liabilities and creating a payroll item to be able to reimburse the employee for the social security and medicare. From there I was able to write a new check reimbursing the liabilities she shouldn't have paid. I had already adjusted the employee's tax exemptions.

katherinejoyceO

Hello there, @JeanG.

Thanks for visiting the Community. I appreciate you for being so detailed with your concern.

In this case, you'll want to delete the paycheck and recreate a new one to adjust the payroll liability. Here's how:

Delete paycheck

Go to the Banking menu, then select Use Register.
Select and open the check you'll want to delete.
At the top of the paycheck, choose Delete, then click OK in the pop-up box.

And now, since the withholdings for that paycheck is already paid, you'll need to exempt the employee for the deductions first before you recreate a new one. Here's how:

Go to the Employees menu and select Employee Center.
Choose an employee, then go to the Payroll Info tab.
Click the Taxes button, then click the Federal tab.
From the Filing Status dropdown, choose Don't Withhold.
Go to the State tab, then choose the right option from the Filing Status drop-down. (The option will vary by state. You may see Don't Withhold, Exempt, or a different choice. If there's no Filing Status drop-down, your state is not subject to state withholding.)
Select OK twice to save your selections.

Once done, you can now recreate the paycheck. You also need to add an item for the amount that was deducted from the previous paycheck.

For future reference, here are some of our related articles about exempting NRA for federal income tax withholding:

Feel free to message again if you have other questions. We're always delighted to assist.

J

JeanGAuthorAnswer

Thank you katherinejoyceO, but that doesn't work since I have already paid the check and it has cleared the bank and the liabilities have been paid.

I was able to speak to a very knowledgeable QB employee today who stepped me through adjusting the liabilities and creating a payroll item to be able to reimburse the employee for the social security and medicare. From there I was able to write a new check reimbursing the liabilities she shouldn't have paid. I had already adjusted the employee's tax exemptions.

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