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garciahvac
March 28, 2023
Question

Payroll Liabilities Overdue-Not true

  • March 28, 2023
  • 1 reply
  • 0 views

Hi There, Last year I tried to work with QB online, and I was also entering the information on QB desktop to keep it up-date in case I did not like QB Online, which I ended up cancelling. The issue is the following: For some reason QB desktop did not calculate the withholdings correctly and I missed to adjust the federal deduction by $3.00 for one employee to match the deduction in QB Online (the paycheck was for the correct amount since it was done in QB Online). I sent the payment of the taxes to the IRS for $994.65 when it should've been $991.65, this was for Q1 of 2022 and I had already cancelled the QB Online subscription so I did from QB desktop. When I realized the error, I made the correction to the employee paycheck. When I went to complete the return in mid April It showed the overpayment and I selected to apply to the next return. But in May (don't remember why) I adjusted the payment to the IRS from the check window to reduce the $3.00 previously overpaid. and thought the issue was corrected. In July when I issued the next payment to the IRS and reviewed my liabilities , I had a $3.00 balance due so I went ahead and processed a check. In August the IRS sent me a $3.00 check for the overpayment. This I deposit through the "refund deposit taxes and liabilities" for the period beginning 4/1/22 to the federal withholding account. Now it is showing that I have an overdue balance for Q2. I spent hours with two different agents from QB payroll and we tried any possible way including adjusting the liabilities, but it just creates another issue. Unfortunately both agents just left me on hold until the call just dropped and no one called me back. If some knows how I can get rid of this alert, please I need help.

 

 

1 reply

M
Mark_R
March 29, 2023

I appreciate the detailed information you've shared, @garciahvac.

 

Let's get rid of the overdue status of your payroll liabilities so you can get back to working order.

 

There are several reasons why scheduled liabilities show as overdue in QuickBooks Desktop. Here's a list of them:

 

  • Liabilities haven't been paid
  • Liabilities were paid, but never entered into QuickBooks
  • Liabilities were paid through Write Checks or Bill Payment
  • Liabilities were overpaid in one period and underpaid in a prior period
  • Paid through date is after the check date
  • Paid through date crosses into next year

 

To fix them, you can follow the steps in this article depending on the cause you've experienced: Fix overdue or red scheduled liabilities in QuickBooks Desktop.

 

In addition, I also suggest seeking help from your accountant to guide you on which correct period you should apply the refund. If you don't have an accountant, you can find one through this link: Find-a-ProAdvisor website.

 

Feel free to come back to this post if you have other concerns or follow-up questions about your payroll liabilities. I'll be right here to help.

G
garciahvacAuthor
March 31, 2023

Thank you for your reply.  I have tried every way possible.  If I adjust the liabilities to reduce it or try to pay it, the alert goes off but it creates a credit. I tried on the check window to enter the $3.00 liabilities tab and enter negative expenses tab and it creates a credit.  I already tried the steps for the liabilities overpaid in one period and underpaid in another.  I overpaid for the month of March and underpaid for the month of April, but now the amount overdue is not the $3.00 but the full amount for federal, Social Security and Medicare for the month of March.  Is there a way to adjust it without affecting the liabilities?

Adrian_A
Adrian_A
March 31, 2023

I appreciate you for trying the steps shared by my colleague, garciahvac.

 

When you create an adjustment, the account affected is the liability account. If you don't want to use the said account, I'd suggest reaching out to your accountant so they can guide you on the best alternative account to use. You can find one through this link: Find-a-ProAdvisor website.

 

Also, if you run into issues on running the Payroll Liability Balance report, you can check this reference: Fix a discrepancy on Payroll Liability Balances report in QuickBooks Desktop Payroll.

 

Keep me posted whenever you have concerns about managing your QuickBooks file.

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