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P
Pam80439
January 6, 2022
Question

YTD Payroll Taxes Not Reflecting Payroll Taxes from Prior Period

  • January 6, 2022
  • 1 reply
  • 0 views

I use Quickbooks Desktop Payroll.  I entered payroll information for the final paycheck of the year (12/31/2021) but the employee YTD amounts were not correct.  The YTD payroll amounts were correct, but YTD payroll taxes did not reflect taxes paid in prior periods.  Therefore, the final paycheck was showing Social Security taxes even though the maximum had been met in a prior pay period.

 

Is anyone else having this issue?

1 reply

R
ReymondO
January 6, 2022

Hi there, @Pam80439.

 

It's possible that your taxable wage for Social Security hasn't actually reached the maximum amount. It could be that some of your payroll items that aren't taxable to SS were added to your YTD payroll amounts.

 

To verify, let's run the Payroll Summary report and check if the wage base has reached $142,800, and the taxed amount of $8853.60 (SS rate which is 6.2%). This is the taxable maximum for earnings in 2021.

Here's how:

 

  1. Go to Reports and select Employees and Payroll.
  2. Click Payroll Summary.
  3. Double-click the Social Security Employee amount.
  4. Look for the name of the employee and check if the wage base and taxed amount have reached to the maximum.

If the maximum amount was reached and your next paycheck was still taxed, let's perform some troubleshooting steps to isolate the issue. There might be a minor data damage in your company file that's causing this behavior. 

To start, let's update QuickBooks Desktop (QBDT). 

 

  1. Go to the Help menu and select Update QuickBooks Desktop.
  2. Click the Update Now tab. 
  3. Select Get Updates to start the download.
  4. When the download finishes, restart QuickBooks.
  5. Once prompted, accept the option to install the new release.

 

If you're still getting the result, run the Verify and Rebuild data tools to fix the issue. 

 

Moreover, you can check out our Year-End Guide for QuickBooks Desktop. This will provide you with some info on what you'll need to do when closing your books and preparing for the new one.

 

Let me know how else I can help you with QuickBooks by adding a comment below. I'm more than happy to lend a helping hand. Keep safe!

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