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R
rgosyne
July 11, 2023
Question

Payroll taxes

  • July 11, 2023
  • 1 reply
  • 0 views

So i did my payroll not realizing that Quickbooks did not deduct any taxes. All the employees have already receive their paycheck through direct deposits, Now my 941 quartely return is off becasue the taxes for that pay period was not calculated is there any way i can correct this or do i just have to do a 941x

and adjust the tax liability for that period

thanks

1 reply

JoesemM
JoesemM
July 11, 2023

It's great to see you here, @rgosyne. Let me share with you some tips on how to correct your payroll taxes in QuickBooks. This way, it calculates correctly when filing your payroll forms.

 

Since you didn't deduct any taxes from your direct deposit checks, please be informed that there will be future deductions with the future payroll of your employees. Then create a non-taxable deduction item and apply it to your next payroll. These items won't be added to the employee's taxable earnings. 

 

For more details about creating a deduction and how to apply the item to the employee's profile, see this article: Set up, change, or delete employee-paid payroll deductions.

 

Then, create a liability adjustment to correct discrepancies on your payroll taxes. Here's how:

 

  1. Go to Employees, then Payroll Taxes and Liabilities.
  2. Choose to Adjust Payroll Liabilities.
  3. In the Date and Effective Date fields, select the last paycheck date of the affected month or quarter.
  4. In the Adjustment is for section, select Employee Adjustment to correct your employee's YTD info. Then select the employee's name. Do this even if the item being adjusted is company-paid.
  5. Under the Item Name column, select the payroll item you want to adjust.
  6. Enter the Amount of the adjustment.
  7. Enter the amount under the Income Subject to Tax column if you need to make a wage base adjustment.
  8. Under Memo, enter a note about the adjustment for reference.
  9. Click on Accounts Affected, then OK.
  10. Hit OK to close the Affect Accounts window.
  11. Select Next Adjustment if you have additional employees to enter an adjustment for. Otherwise, tap on OK to save the changes.

 

For complete information, you can check out this resource and refer directly to Step 2: Adjust your payroll liabilities: Adjust payroll liabilities in QuickBooks Desktop Payroll. 

 

Once the adjustment is done, you can now process the amendment forms for the corrections of your tax entries. For more details, you may open this article: File a corrected Federal Form 941 and 940 in QuickBooks Desktop Payroll.

 

In addition, let me attach these articles to help you understand tax calculations in QuickBooks Desktop:

 

 

Reach back to us here in the Community if you need extra help managing your business growth and payroll transactions using QuickBooks Desktop (QBDT). I'm always here o help. Take good care.

R
rgosyneAuthor
July 14, 2023

Thanks for your help

what are you refering as a non taxable deduction tere are several choices for the the payroll item type for eg wage

Addition

deduction

company contribution 

futa

state

other

Can you be more detail on which one i should choose

thanks

C
CharleneMaeF
July 14, 2023

I'm here to help properly set up the non-taxable deduction item,rgosyne.

 

Let's select Deduction. We'll have to use the Custom Setup to see this option. Please see the detailed steps below.

 

  1. Go to Lists, then Payroll Item List.
  2. Select the Payroll Item dropdown menu, then New.
  3. Choose Custom Setup, then Next.
  4. Click Deduction, then Next.

  5. Enter the deduction's name, then select Next.

  6. If applicable, select the name of the plan administrator (or add it) and the account number. Then, click Next.
  7. Select None as the Tax tracking type. 
  8. Click Next three times.
  9. Select net pay in the Gross vs. net window, then Next.

  10. After that, select Finish.

 

Once done, you can apply the item to the next payroll. This won't be added to your employees' taxable earnings. 

 

Additionally, you can set up and repay your employees' advances in QuickBooks Desktop if you want to pay them earlier than the schedule.

 

Please keep us posted if you need additional assistance managing payroll and employees. We're always here to ensure your record is accurate.

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