Payroll Liabilities not matching - How to clear QBD

Let's identify the reason for the incorrect liability amount displayed in QuickBooks, @CCS77.

According to your input, the problem may be due to a negative UI and WH balance. Firstly, check the Payroll Liability Balance to confirm if UI and WH appear as negative balances. If so, this explains why the liability amount doesn't align with your State form fees. As a result, you may have overpaid, which is why your current tax file isn't reflecting yet, as QuickBooks is catching up with the overpayment.

Here's how to locate the Payroll Liability Balance:

1. Go to the Reports menu.
2. Click Employees & Payroll.
3. Locate Payroll Liability Balances, then customize the date.
4. Check the UI AND WH balances.

To address this, adjust the payroll liability to correct the overpayment UI and WH balances. Please check the step-by-step guide below:

1. Go to Employees, then Payroll Taxes and Liabilities. 
2. Select Adjust Payroll Liabilities.
3. Choose the Date and Effective Date fields, and select the last paycheck date of the affected month or quarter.
4.  In the Adjustment section, select the Employee button, then choose the specific employee to correct the employee's YTD information.
5. Under the Item Name column, select the payroll item you want to adjust (UI AND WH).
6. Enter the Amount of the adjustment.
7. Enter the amounts under the Income Subject to Tax column if you need to make a wage base adjustment.
8. Select Affected Liability and Expense account, then OK.
9. Select OK to close the Affect Accounts window.
10. Select Next Adjustment if you have additional employees to enter an adjustment for. Otherwise, select OK to save the changes.

If you're unsure about making the adjustment on your own, I recommend contacting Desktop Payroll Support to assist you in verifying the balances and creating the adjustment. Once the Liability amount is corrected, the new state taxes filed will automatically reflect in QuickBooks.

Also, I'll be adding this article to help you manage your state payroll taxes in QuickBooks:

• Set up state e-file and e-pay in QuickBooks Desktop Payroll
• E-file and e-pay state forms and taxes

Let us know if you have other questions about state taxes. I'm here to help. Take care.