PAYROLL LIABILITIES OVERPAID

Hi there, @ jeffspharmacy.

When your payroll liabilities are incorrect, you can use a liability adjustment to fix them.  Let me help you on how to accomplish these steps in QuickBooks.

1. Go to the Employees menu, then Payroll Taxes and Liabilities, and select Adjust Payroll Liabilities.
2. Select which adjustment is for.
3. Select the employee.
4. Complete the Taxes and Liabilities fields.
   • Select the Item Name you want to adjust.
   • Enter the Amount of the adjustment. Use a positive number to increase or negative to decrease the amount.
   • Wage Base is rarely needed, even when you override a tax amount on a paycheck.
   • You only use Income Subject to Tax when making a wage base adjustment.
   • You can use the Memo field to enter a note about the adjustment for future reference.
5. Select Accounts Affected and then OK.
   • Select Do not affect accounts to leave balances unchanged for the liability and expense accounts. The adjustment will only change the year-to-date amounts on your payroll reports.
   • Select Affect liability and expense accounts to enter an adjusting transaction in the liability and expense accounts.
6. Click OK. Then OK.

For proper accounting of your books, I'd also suggest consulting an accountant. Refer to this article for more detailed information: Adjust payroll liabilities in QuickBooks Desktop.

If you'd also like to apply the overpayment as a credit, check out this article: Apply your payroll liability overpayment as a credit

For future reference, this article covers all the steps on how to handle overpayment in payroll liabilities: Record a payroll liability refund check.

Please let me know if you have other questions or concerns with payroll taxes. I'll be around for you. Have a wonderful day ahead.