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Rox_
Rox_
April 30, 2021
Question

Payroll Liability Adjustments

  • April 30, 2021
  • 2 replies
  • 0 views

Can someone please tell me how in the heck to adjust payroll liabilities in QBO?!

 

I filed the OR State Transit Tax through the Oregon Revenue account (not in QBO), its telling me that I have a payment, which would be correct if I didn't already have an overpayment that I applied. I can't seem to get this "File your OR-STT now" to disappear.

 

I've already filed it, and it wants me to record a payment. But there was not payment that needed to be made. So I am unsure how to fix this. Thank you.

2 replies

Kristine Mae
Kristine Mae
May 2, 2021

We'll have to create a payroll correction, Rox_. Let me route you to them.

 

I suggest reaching out to our payroll support so an agent can pull up your account and make some adjustments. Here's how:

  1. Click Help inside QuickBooks Online.
  2. Enter "I need a human" in the Type something field.
  3. Click Get help from a human.
  4. Enter "Payroll correction" in the description field, then click Continue.
  5. Select either Chat or Callback.

Feel free to take note of the support hours so you can immediately get hold of a live agent.

 

You're always welcome to post in the Community if you have other payroll concerns. Take care!

T
taxangel
December 9, 2021

QBO controls the payroll liability adjustments and even up to just voiding a payroll check.  I have complained about this before.  As an Accountant, I'm knowledgeable enough to know how to do this but Intuit will not allow you to.  You must waste your time contacting them and allow them to do it for you.  Definitely needs to be addressed,

    A
    alysonlael
    May 26, 2022

    FUTA 940 tax is not accruing correctly for Shareholders. It's accruing $420 per year even though only $42 is owed by the end of the year due to SUTA wages for the company as a whole (15 employees) are greater by year end than FUTA wages so the extra 5.4% is not due. See the FUTA Form 940 instructions page 10 the Worksheet for Line 10. This wouldn't be a problem except there is no Payroll Liability Adjustment feature in QBO so I can't correct the issue. QBO tells me that the tax is owed. If I mark the payment as Manual (and don't actually make the payment because I know it's not due), then it tells me I have an overpayment of $536.93 (which I don't). So then I have to do lots of extra journal entries to write off the fake payment I didn't make and write off the refund that isn't owed. A simple Payroll Liability Adjustment feature like Desktop has is imperative.

     

    Especially when states change their SUTA rates or workers comp rates mid-year, I need to be able to adjust the tax due in QBO without lots of extra manual work or calling Support. We have 100s of small business clients. Those that are in Desktop I can quickly make a payroll liability adjustment and record the Payroll Liability Check for the correct amount so it ties to the Tax Due by the agency and reconciles in my bank account. QBO makes me record the wrong payment amount which throws off my bank reconciliation. And then I have to do a journal entry to write off the payroll refund.

     

    On the other hand, I have had some clients that do pay the wrong amount because QBO has the wrong amount owing. If we had the payroll liability adjustment feature in QBO I could correct it before they make the payment to avoid the added hassle of trying to collect a refund from a taxing agency.

     

    Please provide payroll liability adjustment feature in QBO and/or allow us to override the payroll tax payment prior to posting, similar to Desktop payroll. This would save us countless hours of headache for our hundreds of small business clients. Then we could actually consider moving more clients from Desktop to Online.

    KlentB
    KlentB
    May 26, 2022

    Hi alysonlael,

     

    I know that this process hasn't been easy for you. I understand how the payroll liability adjustment feature can help you efficiently handle your client's taxes. To help improve your experience in QuickBooks Online. I'd recommend sending feedback to our Product Development Team. We're always taking note of our customers' requests/ideas and take them into consideration when prioritizing feature development. Here's how:

     

    1. Log in to your QBO account.
    2. Select the Gear icon at the top, then choose Feedback.
    3. Enter the features you would like us to add.
    4. When you're done, click Next to submit feedback.

    For more tips on managing your taxes in QuickBooks Online, you can browse a topic from this link: Taxes.

     

    Don't hesitate to visit this thread again if you have follow-up questions. I'll be around to help.

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