Payroll Tax payment

Thanks for coming here, @booksworm.

We appreciate you for diligently paying your payroll tax liabilities. Let me guide you on how to adjust your 4th quarter liability to offset the overpayment,

Since you haven't received any refund for the overpayment, we can underpay the 4th quarter depending on the excess balance in the 3rd quarter. After that, let's override it to offset in this quarter. Here's how: 

1. Choose Employees on the menu bar > Payroll Center.
2. Pick the Transactions tab.
3. Select Liability Checks.
4. Double-click on the liability check that was underpaid, to compensate for the overpayment.
5. Edit the liability period to cover both periods (the period that the item was overpaid and underpaid).
6. Click Save & Close.
7. Double-click on the liability check that had the overpayment.
8. Edit the liability period to cover both periods (the period that the item was overpaid and underpaid).
9. Tap Save & Close.

Feel free to read this article for more details: Fix overdue or red scheduled liabilities in QuickBooks Desktop.

Moreover, if you're utilizing QuickBooks Desktop (QBDT) Payroll Assisted, contact our support to resolve your tax overpayment.

On the other hand, if you received a refund check from your tax agency for your overpaid payroll taxes before performing the steps above, you can apply the credit to the recent quarter by creating a liability check and applying it. You can follow these steps:

1. Go to Employees, and select Payroll Taxes & Liabilities. 
2. Choose Pay Scheduled Liability.
3. In the Pay Taxes & Other Liabilities section, select the tax or liability you want to pay. Pick View/Pay.
4. Tap Check/E-pay.
5. Select the Expenses tab. 
6. Pick the account where you want to apply the credit.
7. Enter the amount of the credit (up to the amount of the check) as a negative figure in the Amount field.
8. In the memo field, enter an explanation of the transaction.
9. Select Recalculate. If you still have a credit balance, you can apply it to your next payment.

For more details, you can read this article: Resolve a payroll tax overpayment.

For reference, you can use this checklist to prepare for your year-end tax forms: Year-end checklist for QuickBooks Desktop Payroll.

For additional questions on preparing your 4th quarter payroll liabilities tax, never hesitate to reply to this post. I'll be willing to lend a hand. Have a good day.