Payroll Center liability does not match the Payroll Liability Report

Hello there, @jshaye.

Let me share information about the Payroll Center Liability that doesn't match the Payroll Liability Report in QuickBooks Desktop.

It can be that an employee's State Unemployment (SUI) is incorrect. If taxes or payments are overpaid or underpaid, QuickBooks Desktop will auto-correct them. Thus, the Payroll and Liability report, as well as the details on the Liabilities screen may not always match.

To fix the discrepancy, you can run the payroll liabilities report by quarter to trace the difference. Multiply the wage base and rate to check the amount. It is better to look for the employee whose SUI amount is incorrect. Then, perform an employee adjustment SUI with the correct amount. Once done, the amount in the Payroll Center Liability and the Payroll Liability Report in QuickBooks Desktop should match.

Here's how:

1. Create a Payroll detail review report.
2. Customize your report to display the affected date, employees, and tax items.
3. Check if tax amounts are calculated accurately based on wage limit and tax rate.
4. From the report, determine if you want to decrease or increase the wage base, tax amount, income subject to tax, and by what amount.

Then, proceed to the Payroll Taxes page to create the adjustment: 

1. Go to the Employees, Payroll Taxes, and Liabilities and then select Adjust Payroll Liabilities.
2. Choose the correct Effective Date and click Employee Adjustment.
3. Select the employee from the drop-down list.
4. In the Taxes and Liabilities section, choose the Item Name column and click the payroll or tax item you want to adjust from the drop-down list.
5. Fill in the adjustment amount in the corresponding column (negative to decrease, positive to increase).
6. You can use the Memo column to note the reason for the adjustment and then choose Accounts Affected.
7. Choose Do not affect accounts or Affect liability and expense accounts.
8. Click OK to save your changes.
9. Refresh the Payroll Detail Review report to verify the accuracy of the adjustments you entered.

In case you enter an inaccurate State Unemployment (SUI) or withholding (SIT), here's an article you can use to fix it: Troubleshoot incorrect state unemployment (SUI) or withholding (SIT) on paychecks.

Feel free to click the Reply button below if you have questions about the Payroll Center Liability that doesn't match the Payroll Liability Report in QuickBooks Desktop. I'm always here to help. Have a great day.