Taking over payroll from accountant on March. Now accountant asks us to enter missing payroll info for Jan and Feb.

Question

On March 2021, we took over Payroll from our accountant. We have been running Payroll since.

Our QuickBooks is missing January and February 2021 payroll, which was done by our accountant using their Enterprise QuickBooks.

Basically, the first 2 months of 2021 payroll was performed by the accountant. The remaining 10 months of 2021 payroll was performed by us..

I recently spoke to the accountant, and she's asking for the 940 (annual) and 941 (quarterly) reports. Also, we need to re-print the W2 forms because we are missing 2 months of payroll information (January and February).

The accountant sent us their 2021 (Jan and Feb) payroll detailed summary with approximately 500 checks. The report shows, for each employee, the checks total gross amount, total net amount, state taxes, county taxes, etc.

The accountant wants me to enter the missing payroll information, then send her the 940, 941, and W2 forms.

How, can I add the missing payroll checks into QuickBooks? What's the best way to do it? Which QuickBooks tool should we use? Please, some simple step-by-step instructions would be appreciated.

FYI: I am not an accountant, we just run the payroll ourselves.

Otherwise, if we send the accountant a payroll report with the last10 months of 2021, can they fill out the needed tax information? (The accountant did the first 2 months of 2021 payroll)

Rea_M · Accepted Answer

Hi Mark,if the Payroll history tool doesn't work for 2021, then can checks be entered manually using the Unscheduled Payroll? This is the tool that my previous accountant recommended to use. Could I have some guidance on how to enter a 2021 payroll check?For testing (see attached photo), I entered the pay period, and I manually randomly filled out the taxes. As you can see, the Earning Item can only be Bonus or Annual Salary in order to manually enter the check total. Otherwise a Warning popup message appears (see attached photo).How can I enter an hourly employee check? I have a QuickBooks report with their previous checks and pay stubs. My former accountant told me to manually enter the total check amount, and taxes. Where do I enter the check total amount? In order to enter the check total amount, I need to use 'Enter net/Calculate Gross' checkbox, which requires to use only Bonus or Salary.Changing the category from Hourly to Bonus or Salary does it cause tax forms miscalculations? Otherwise, are there other ways to do it?Please, could someone help with simple instructions on how to enter a missing 2021 paycheck?I appreciate the update you've provided above, @DesktopPayroll2021. I'm here to further guide you in entering your 2021 payroll checks in QuickBooks Desktop (QBDT). You're already on the right track in manually entering your 2021 payroll data through the Unscheduled Payroll tool. It won't cause miss calculations on your tax forms once you make sure you've entered the correct gross salary. Then, whether hourly, bonus, or salary, it'll all be counted as a gross wage on tax forms. On the other hand, I've found an alternative way how you can enter your 2021 payroll checks through the QuickBooks Payroll Setup window. You may opt to temporarily change your computer date to 2021 (i.e., 01/01/2021). This will let you enter the payroll data for that specific year. Then, to learn more how QBDT determines YTD amounts for new and existing paychecks, please refer to this article: Troubleshoot paychecks calculating incorrectly. Also, make sure to visit this page to further guide you in managing your payroll account and employee transactions in QBDT: Desktop Payroll Help Articles. It includes topics about processing payroll, reports, and taxes, to name a few. Please keep me posted in the comments if you need further assistance in entering your 2021 paychecks data in QBDT. I'm always around to help. Stay safe, @DesktopPayroll2021.

Rea_M · Answer

I'll make sure you're able to add missing payroll info in QuickBooks Desktop (QBDT) Payroll, @DesktopPayroll2021.

You're able to add paychecks, tax payments, and non-tax payments you already paid in QBDT Payroll. Please make sure to select the appropriate payroll bank accounts affected to keep your data accurate.

You'll first have to open the Payroll Setup Interview. To do this, go to the Employees menu, then select Payroll Setup. Then, add your employee’s prior paycheck info. You can refer to the Payroll Detailed Summary report provided by your accountant for the details. Whenever you're ready, follow these steps:

In the QuickBooks Payroll Setup screen, select Payroll History.
Select the Yes, have paid employees in [year] radio button, and then select Continue.
Select Yes or No on Consolidate paychecks for the previous quarters, then select Continue.
Choose the employee you want to enter paycheck details for and then select Edit payroll history.
Enter the paycheck amounts as a total for each previous quarter or by paycheck (depending on what you selected in step 3). You’ll need to enter the amounts by paycheck date in the current quarter.
Once you’ve added all the paychecks for that employee, select Done.
Repeat the above steps for each employee paid in the current year, including those who no longer work for you.

Then, when you’ve paid taxes for your previous payrolls, you’ll need to enter those payments. This info determines how much you still owe and ensures your future tax payments and filings are accurate.

For the step-by-step guide, please refer to this article: Enter historical payroll data in Desktop Payroll.

Also, to further guide you in managing your payroll account and employee transactions in QBDT, I'd recommend checking out this article: Desktop Payroll Help Articles. It includes topics about processing payroll, reports, and taxes, to name a few.

Please don't hesitate to let me know if you have other payroll concerns and questions about managing employee paychecks in QBDT Payroll. I'll gladly help. Take care, and I wish you continued success, @DesktopPayroll2021.

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