How to adjust Payroll Liabilities in QuickBooks?
It has been seen that almost 30% of SMEs and medium-sized business owners usually overpay the taxes each year. And that’s when the Quickbooks payroll feature comes into play. Where you can adjust payroll Liabilities in Quickbooks. This function of the software allows you to make all the adjustments accordingly and you don’t have to pay extra ever again.
This feature also helps to check not only the tax-paying side but also the invoices whether you have paid anything extra to any of your employees.
How can you adjust Payroll Liabilities in QuickBooks on your desktop?
If you have been using the payroll assisted in Quickbooks Desktop and need to adjust Payroll Liabilities in QuickBooks. Follow these steps quickly so that you can do the needful.
Step 1: Finding the discrepancy
There can be more than 1 discrepancy and you will have to check the numbers. Here is how you can do it.
- First change the computer’s date to the previous year’s last date. And then run a payroll check. Do it for every year you think is required.
- Then you need to also run the payroll summary report for the quarter or month that needs to be adjusted. And ensure to make notes for the same.
Step 2: Adjusting the payroll liabilities
Now, once you have found the number of discrepancies in your Quickbooks; it is time to adjust them.
- Navigate to “Employees” and then click on “Payroll Taxes and Liabilities.”
- Then you will have to select “Adjust Payroll Liabilities.”
- Next, go to the “Date” as well as “Effective Date” section, you need to select the last paycheck date with the affected quarter and month.
- Go to the “Adjustment is for” section and do the needful. If it is “Employee Adjustment; proceed with that, or go for “company adjustment.”
- Then head to the “item name” section and click on the items you wish to adjust.
- After this, you will have to enter the “amount” that needs to be adjusted.
- If you have to make the wage base adjustments, simply do that under the “Income Subject to Tax” column.
- Go to the “Memo” and make sure to note all the adjustments to refer to later.
- Then, click on the “accounts affected” and click on “OK”
- If there are more than one employee, you need to repeat the same process with all the others. And then you need to click, “Ok.”
Read more: How to resolve QuickBooks Abort Error
Conclusion
It doesn’t end here. After this, you need to check if all the liabilities are updated properly or not. If they are, you need to run a payroll summary report and the liability balance report. This way you can adjust Payroll Liabilities in QB. One last thing that you might have to check or do is correct the previously paid payroll liabilities.
All of this together needs to be done to adjust the liabilities. And once that’s done, you can rest assured that the process is completed. If you get stuck anywhere in this process, you can always seek help from our experts.
