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Lisa2112
December 21, 2023
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Unreconciled payment in banking on Federal Taxes from switchover from IOP to Quickbooks Online Payrill

  • December 21, 2023
  • 2 replies
  • 0 views

Good morning.

Back in April of 2021 IOP went away and we had to switch over to QBO Payroll Premium.  I spent a lot of time with support so I could do the migration and also moved it over so QB was handling all of our payroll tax payments.  Whenever running payroll I would get a message when it was completed stating there was some unresolved taxes that needed to be handled prior to me using QBO Payroll.  However, when I would go to "Action Needed" under the payroll menu nothing existed there.  I called support and was told (more than once) that everything was fine and there was nothing I should worry about.  That would go away.  Also, as far as I could see all payments had been made.  Just prior to December I decided to revisit this again.  When I called the "Payroll Support Specialist" hit something on the back end that suddenly populated information under the "Action Needed" area that showed a payment needed for $845.44 in April of 2021.  This was the month of the switchover.  Then, there was a button for resolve.

 

She asked me if we had made that payment and I told her that all payments that were due on Federal Taxes had been made.  We had never received a notice and there was no issue. So she told me to hit the resolve button.

 

What I did notice after I followed her instructions is now have an unreconciled payment of that amount on 4/7/2021 for PR Tax Payment for Period: 04/01/2021-04/02/2021 but then there is a payroll refund entry for that same amount on 7/8 that shows for the period of 04/01/2021-06/30/2021.  There is also now an unreconciled payment in my banking. I deleted the payment which then threw my banking off by that amount.  When I go to the reconciliation page it shows my starting balance as off.  So I went to the payroll area and there was the resolve button again.  I hit it (yes, I know, wrong) and it recreated the payment which put my banking back in order but now has created yet another credit on 12/1/2023 for that same amount.

 

We have no unpaid taxes.  I called support once again and was told there need to be offsetting entries that will get rid of this so I can mark the check as reconciled but this payment was unnecessary and never needed to be paid.  This should not appear in my banking at all.

 

Before I go any further than this is there anyone who can give me some insight here and is there a way to resolve this?  

Best answer by Rainflurry

Hi Rainflurry, the day went mad with the holiday coming and I expect no return reply until next week, I truly appreciate the help you've given me already.

I am attaching another pdf.

The top snip shows that I find the payroll refunds showing in the asset register in the COA.  Also noting our tax lawyer did an offset entry at the end of 2021 to clear them.  Then, wonderful me added the one on 12/1 with my clicking of the resolve button.

Below that is the journal entry.

I then show the payment as it appears in the banking register and the liability register so you can see the accounts.  So, the account that's listed under the payment in the banking register is not the bank.  Yet, it is in the liability register.  Does that make sense? 

 

 


@Lisa2112 

 

OK, now we're getting somewhere.  So, the 7-8-21 refund was reversed by your attorney's entry.  That leaves the 12-1-23 refund and the 4-7-21 payment to be reversed.

 

To reverse the 12-1-23 refund, copy the journal entry from your attorney, date it 12-1-23, and change the amount of debit and credit to $845.44.

 

To reverse the 4-7-21 payment, create a deposit for $845.44, dated 4-7-21, and assign the Federal PR Txs Payable (941) liability account to the deposit.  Or, if you prefer to use a journal entry (JE) - debit your bank account and credit the Federal PR Txs Payable (941) liability account.  A deposit or journal entry both work so it's up to you what you want to use.  Some people like to use JEs for adjustments like this so that's your call.  After recording the deposit/JE, you can clear that against the payment and your banking will reconcile because the two transactions net to zero, and you're good to go!  

 

 

2 replies

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Lisa2112Author
December 21, 2023

UGH, hit send and see a spelling error.  Frustration about this has gotten the best of me.  Appreciate any input from the community.

 

My concern is basically we are being told our tax accountant has to make offsetting entries but I think this is a QBO issue.

JoesemM
JoesemM
December 21, 2023

Hello there, @Lisa2112. I appreciate the detailed information about the unreconciled payment shown in your QuickBooks account.

 

Since it's recreated another credit after you deleted the payment, which threw off your banking, I recommend contacting our Customer Support Team. I know you've reached them multiple times, but they have tools to resolve the amount and perform offsetting entries if necessary. 

 

Here's how:

 

  1. Sign in to your QuickBooks Online company.
  2. Go to Help (?).
  3. Select Contact Us.
  4. Enter your concern, then select Let's Talk.
  5. Choose a way to connect with us:
  • Start a chat with a support expert.
  • Get a callback from the next available expert.

 

For more details about their support hours, see this link: Contact Payroll Support.

 

Additionally, you can use this guide anytime you need help doing or fixing a reconciliation in QuickBooks. I've attached an article you can visit to view our complete reconciliation guide: Learn the reconciliation workflow in QuickBooks.

 

Kindly notify me of how this goes by leaving a comment below. If you have any follow-up questions about reconciliation or concerns with your QBO account, I am happy to answer them. Take care.

Rainflurry
Rainflurry
December 21, 2023

@Lisa2112 

 

"I hit it (yes, I know, wrong) and it recreated the payment which put my banking back in order but now has created yet another credit on 12/1/2023 for that same amount."

 

Just so I understand - are you saying that you now have a payment and a refund to your bank account which offset and your bank account is correct?  If that's the case, then I'm confused as to why you have a credit that didn't also offset.  What do you mean when you say "now has created yet another credit on 12/1/2023 for that same amount."  A credit to what??

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Lisa2112Author
December 21, 2023

Hi Rainflurry, prior to ever contacting QBO Support there were no transactions in my banking that had to do with this issue.  I was simply creating payroll and every time, at the end, I would get a message that I needed to address tax payments that had not been made prior to using the system.  When I went to payroll tax and looked under the widget "Action Needed" it said in the box "We've got you covered".  I called support just to check on this a few times and they assured me I was all set and could just ignore that message I was getting every time I ran payroll.

 

Then, I called after the last time I ran payroll.  I just found this concerning and decided to give it one more go to get an answer.  When I reached the person, she did something on the back end and all of a sudden, I saw this line item and it had a resolve button at the end.  The below that it showed a tax payment due of $845.44 for the pay period mentioned in 2021.  She asked if I had made that payment and I told her that all tax payments had been made.  So, she told me to hit the resolve.  It was after this I noticed it had added this to my check register.  Then, I tried to delete it but when I went to the reconciliation page, I could now see my register was out of whack.  In other words, the next time I go to do the checking recon it says it's off by that amount.  Which is odd.  But, in either case, suddenly now, the resolve button had now appeared again.  Upon selecting it again it added yet another refund line item.  I am attaching a png that shows the three transactions I am referring to.

 

My last call to support netted me a person who said to contact my accountant to do offsetting entries so I could then mark that line item as paid. But, that's an erroneous line item.  There has never been a payment made to the Feds for that amount nor do I owe it.  I believe it to be an issue with the way my payroll periods fall (biweekly) and the switchover from IOP to QBO Payroll and the adjustments were made on the back end.

 

 

Rainflurry
Rainflurry
December 21, 2023

@Lisa2112 

 

Based on your screenshot, you must be showing all three of those transactions in your bank account register and one payment and two deposits when you go to reconcile.  Is that what you see? 

 

You should be able to clear this up by creating a check dated 12-1-23, made payable to the IRS, and assign the 'Federal PR Txs Payable (941)' liability account to the check.  You aren't actually making a payment to the IRS, the check just creates the offsetting entry.  The check does the same thing as if you created a journal entry that debits the 'Federal PR Txs Payable (941)' liability account and credits your bank account because, as it sits, your 'Federal PR Txs Payable (941)' liability account is overstated by $845.55.  The check will create an offsetting entry to the duplicate refund on 12-1-23 that can be cleared the next time you reconcile and it decreases your 'Federal PR Txs Payable (941)' liability account by the amount it is overstated.  All 4 of these transactions will offset and you should be good to go.         

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