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A
AliB2
December 25, 2021
Question

Payroll checkup reversing payroll liability adjustment

  • December 25, 2021
  • 1 reply
  • 0 views

I mistakenly setup an employee for the wrong state for unemployment insurance. I realized this when filing my quarterly reports. I performed a payroll liability adjustment decreasing the wage base, income subject to tax, and amount for the wrong state and increasing the wage base, income subject to tax, and amount for the correct state. After my adjustments the Payroll Detail Review report shows the correct amounts as do the tax forms. However, when I run a payroll checkup, it shows an error for this employee and creates additional payroll liability adjustments putting the amounts back to the incorrect state. What am I doing wrong?

1 reply

S
SarahannC
December 25, 2021

Hello there, @AliB2. 

 

I'd like to share some ways on how to fix the incorrect Payroll checkup.

 

The Payroll checkup shows an error because of the liability adjustment created in the payroll checkup. We'll need to delete it first. Here's how:

 

  1. Go to the Employees menu.
  2. Select Payroll Center.
  3. In the Transactions tab, select Liability Adjustments.
  4. Click to open the adjustment. Then, Delete.

 

Once done, make sure the SUI is unchecked in the Payroll Info. You can follow the steps below to complete the task.

 

  1. Follow the first and second steps above.
  2. In the Employees tab, find the name of the employee.
  3. Click Payroll Info. Then, Taxes.
  4. Under the State section, uncheck the SUI.
  5. Once done, click OK to reflect the changes.

 

 

Afterward, run a payroll checkup to verify and review your employee's records. 

 

I've collected some articles about handling payroll and employee reports. If you'd like to get more info about them, check the links below.

 

 

Please let me know how it goes. In case you need further assistance, I'm just here to help. Take care, ab201.

A
AliB2Author
December 25, 2021

Then once I’m finished do I go back into the employee profile and check the SUI box since we do pay SUI for this employee?

katherinejoyceO
katherinejoyceO
December 25, 2021

Thanks for getting back to us, @AliB2. Yes, you'll need to go back and check the SUI as long as the correct SUI rate is selected. 

 

For more insights about correcting employees' YTD or QTD, read through this article: Adjust payroll liabilities in QuickBooks Desktop.

 

I'll be here to guide you more with your additional concerns. Take care!

 

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