940 Overpayment

Hi there, @Stacy5.

I'm here to help create a liability check for your canceled payment.

You can void the payroll liability payment in your QuickBooks Desktop company file and make sure to add a note. Here's how:

1. Go to the Employees menu, then select Payroll Taxes and Liabilities and choose Pay Scheduled Liabilities.
2. In the Payment History section, select E-Payments. Then, open the payment made and void it.

After voiding it, the liabilities will re-appear as taxes owed. Once done, you can now create a liability check for the canceled payment. 

Just in case you don't track liabilities in QuickBooks Desktop, you can write a check to record it on your company file. Please be guided with the steps below:

1. Go to the Banking menu, then select Write Checks.
2. In the Expenses tab, select the account you're tracking the 940 liabilities.
3. Enter the necessary information. Then, add a note.
4. Click Save and Close.

However, before you process these solutions, I recommend creating a backup on your company file.

Come back to this post and let me know how it goes, @Stacy5. I want to make sure you're taken care of.

You may want to the payroll liability balances report. This will help you check if the amounts to be paid are correct.

Have a great day ahead!