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M
mikeyg2020
December 16, 2020
Question

how do I record an overpayment of payroll deduction in Quickbooks Desktop

  • December 16, 2020
  • 1 reply
  • 0 views

I accidentally over paid the November payroll source deductions for the charity I work for. The payment already went through. I am going to pay less to CRA for December deductions. How should I record this on QuickBooks? 

1 reply

L
LauraAB
December 16, 2020

Hi mikeyg2020,

 

This is a great question. It's good you've noticed the overpayment of the payroll deductions now so that you can take care of them right away in QuickBooks Desktop to make sure your books are in balance for what you paid outside of the program. How you'll go about this will depend on a few things, such as if you've already recorded the liabilities in the software, but I'll get you started on this.

 

When you're using the Pay Liabilities feature in QuickBooks Desktop Payroll, the program does the work of calculating what you have to pay for you. When there are instances where what you're paying is different than what's showing on the screen, you can manually change or adjust the amounts before completing the transaction.

 

To manually change the numbers, you would simply change the amounts in the Amount column on the Liability Cheque when you reach that step. If you think an adjustment might be better suited to your situation, you can use that feature instead. This article goes over the processes for paying the payroll deductions: Pay or adjust payroll liabilities

 

If those don't work for you, you've already gone through the Pay Liabilities process, or you're not sure which is the better transaction for your books, I encourage you to check in with an accountant. One that knows QuickBooks Desktop in particular will have the knowledge to get you on track with this situation. If you don't already have an accountant, feel free to check out our Find an Accountant page to see our list of QuickBooks-certified pros near you.

 

Enjoy the rest of your day!

M
mikeyg2020Author
December 16, 2020

Thank you for your reply. I actually read the article: Pay or adjust payroll liabilities you referred to me before I posted here but am still unsure what to do.

I had already recorded the liabilities in the software using Pay Liabilities feature in QuickBooks Desktop before I made the wrong payment to CRA online.

L
LauraAB
December 16, 2020

You're welcome. Great job with putting in some research and finding that article already. I know it can be tricky to figure out which are the best steps to take for your situation when there are a few different options. Once again, I recommend working with an accountant from this point on, especially knowing now the additional detail that you've already recorded the transaction in QuickBooks Desktop. It could be as simple as deleting the transaction you already created through the Pay Liabilities feature and re-recording it with the amounts you actually paid or there may be a different set of steps that will be better for you. An accountant will be able to advise on this to ensure the integrity of your books.

 

All the best to you.

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