Skip to main content
B
Big-Al
October 12, 2022
Solved

Payroll tax tracking

  • October 12, 2022
  • 1 reply
  • 0 views

I want to check before I change something so I don't dig the hole deeper ....

 

In the Payroll Item List, the same GL number is used for FIT, Employer & Employee SS, and Employer and Employee Medicare.  I would like to track these separately:  FIT in one GL, SS (both EE and ER) in another, and Medicare (EE & ER) in another GL.  But I'm not sure the payroll reporting that reports on these totals will be messed up if I change them.  ????

 

I also realize that I will need to update every employee in the Payroll tab for these new Item names.  I assume (?) that I should leave the non-active/terminated employees as they are since no new data is posted to them.  However, will I have a problem at doing the quarterly or annual tax reporting?  Is this better left to do only at the beginning of a year?

 

(I know .. it would be best to have set it up correctly to begin with, but that was before my time ...)

 

I don't know how QB selects some of the GL #'s for the reporting for taxes, or if those numbers aren't meant to be changed.  Is there a screen that describes more detail in that?

 

Hope this makes some sense.  Thanks in advance for any guidance & watchouts.

Best answer by BigRedConsulting

RE: But I'm not sure the payroll reporting that reports on these totals will be messed up if I change them. ????

 

You can change the liability account on payroll items to a different liability account. It won't change the way they appear on payroll reports.

 

RE: I also realize that I will need to update every employee in the Payroll tab for these new Item names. 

 

There shouldn't be any new item names to update after changing accounts on payroll items, which doesn't create any new payroll items. Editing existing payroll items generally does not require you to edit the employees.

 

RE: However, will I have a problem at doing the quarterly or annual tax reporting? Is this better left to do only at the beginning of a year?

 

I don't think it matters when you change the accounts on the payroll items, especially if you update all of the transactions retroactively with the change (which is an option you'll be offered after changing the account when you save the item.)

 

RE: I don't know how QB selects some of the GL #'s for the reporting for taxes, or if those numbers aren't meant to be changed. Is there a screen that describes more detail in that?

 

Taxes are reported by payroll item, not GL account. QB has a default account, usually named "Payroll Liabilities" that is used on taxes and some other deductions automatically when the items are created. But you can change it any time you want and it shouldn't cause issues.

 

1 reply

BigRedConsulting
BigRedConsultingAnswer
October 12, 2022

RE: But I'm not sure the payroll reporting that reports on these totals will be messed up if I change them. ????

 

You can change the liability account on payroll items to a different liability account. It won't change the way they appear on payroll reports.

 

RE: I also realize that I will need to update every employee in the Payroll tab for these new Item names. 

 

There shouldn't be any new item names to update after changing accounts on payroll items, which doesn't create any new payroll items. Editing existing payroll items generally does not require you to edit the employees.

 

RE: However, will I have a problem at doing the quarterly or annual tax reporting? Is this better left to do only at the beginning of a year?

 

I don't think it matters when you change the accounts on the payroll items, especially if you update all of the transactions retroactively with the change (which is an option you'll be offered after changing the account when you save the item.)

 

RE: I don't know how QB selects some of the GL #'s for the reporting for taxes, or if those numbers aren't meant to be changed. Is there a screen that describes more detail in that?

 

Taxes are reported by payroll item, not GL account. QB has a default account, usually named "Payroll Liabilities" that is used on taxes and some other deductions automatically when the items are created. But you can change it any time you want and it shouldn't cause issues.

 

    R
    rdonaldosn
    August 25, 2023

    I have changed the liability account on withholdings and selected to make the change back to 1/1/2023, however many of the deductions did not change?

     

    Rubielyn_J
    Rubielyn_J
    August 25, 2023

    Hi there, @rdonaldosn.

     

    It sounds like you've successfully updated the liability account and chosen to apply this change retroactively to January 1st, 2023. However, it appears that some of the deductions haven't reflected this change as expected. Allow me to help you with this matter. 

     

    The deduction items are associated with different affected accounts. To resolve this, we can review the other items and update the account if deemed necessary.

     

    To change the payroll item itself, you can follow the steps below: 

     

    1. Navigate to Lists, then choose Payroll Item List.
    2. Right-click the item and select Edit Payroll Item.
    3. Change the info as needed on each window.
    4. Click Finish.

     

    You can also refer to this article for additional information on how to include deductions that your employees are required to pay each payday in QuickBooks: Set up, change, or delete employee-paid payroll deductions.

     

    Furthermore, I will provide the following resources to assist you in managing your payroll within QuickBooks:

     

     

    Thank you again for reaching out to us. We value the opportunity to assist you in ensuring the accuracy and integrity of your financial data. 

    Terms & ConditionsAccessibility statement