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schmbk
August 29, 2023
Question

Payroll liabilities

  • August 29, 2023
  • 1 reply
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My client's file was corrupted and did not deduct the payroll taxes from the last week's employees paychecks.  They issued those checks to the employees.  I made the payroll liabilities adjustment in QB desktop but now we must recover the unpaid taxes from the employees.  I was thinking of adding the missed tax deductions to the next payroll but I'm concerned since I already entered the adjustments into QB, the software will see it as over withholding and attempt to correct subsequent paychecks by reducing the withholdings.  

 

Does anyone have a suggestion on how I might handle this without causing the software to correct the withholding issue?

 

Thanks.

1 reply

BigRedConsulting
BigRedConsulting
August 29, 2023

RE: now we must recover the unpaid taxes from the employees.

 

Most all of the straight percentage taxes, payroll taxes like social security and medicare and most all state taxes will automatically catch up on the next paychecks for the employees (assuming each employee gets another paycheck). So for them there's nothing much you need to do for the taxes to catch up YTD.

 

Income taxes like federal and state withholding are different and they don't catch up. However, it is somewhat legally dubious for you to change those taxes on future paychecks - even though a previous paycheck was inaccurate. You may need to get permission from each employee before doing that.

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