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ElleB4
July 10, 2022
Question

Best practice for deducting underpaid taxes from an employee

  • July 10, 2022
  • 1 reply
  • 0 views

A partner received a bonus payment through AP that was then adjusted to a payroll amount (they were not on the payroll at that time). Now taxes are to be calculated on that bonus payment and a recent change has the employee being added to the payroll with regular remuneration.

 

The full amount will be remitted as soon as the total statutory deductions on the amount are calculated. Is this best done through a manual adjustment to the payroll liabilities to the employee?

 

The second part to this is the employee portions will be deducted from the employee's remuneration over the remainder of the year. What is best practice and how do I set up the deduction? Do I manually increase the taxes by the additional amounts each pay period? Do I create deduction codes for each statutory deduction and link to the liabilities accounts? 

1 reply

A
Alex M
July 11, 2022

Hi there ElieB4,

 

It's vital that all your payroll information be entered correctly so that your payroll totals for the year can be accurate. QuickBooks Desktop Payroll is a great tool able to help you calculate payroll to pay your employees for the hours they've worked. I can point you in the right direction for assistance with entering this pay.

 

In order to know how you can enter this payroll and taxes so they can be correctly accounted for in your pay totals for the year, as well as on your tax reports, I recommend reaching out to the QuickBooks Desktop support team outside of the Community. They'll be able to verify your payroll information with you in a secure setting in order to help guide you in setting up these tax deductions, You can reach them using the options provided in the QuickBooks Desktop software support policies. 

 

If you have any other questions, feel free to reach out here.

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