If you've overwithheld taxes for an employee, first correct the problem
causing the overwithholding in your employee record or the payroll item
Then use one of the following procedures to correct your employee's
year-to-date withheld amounts:
If you've created a paycheck with taxes that are too high but you
haven't printed it or (for Assisted Payroll subscribers) sent it to the
paycheck, create a new paycheck, and adjust it if necessary.
If you've printed the paycheck but haven't distributed it to the
employee, void the paycheck
Then create a new paycheck and adjust it if necessary.
If you've distributed the paycheck to the employee, adjust the next
paycheck if necessary.
For flat-rate, auto-correcting tax (such as Social Security or Medicare),
QuickBooks automatically reduces the tax amount on the new paycheck. (It may
take more than one paycheck to correct the error.)
If the tax is not a flat-rate, auto-correcting tax, you can reduce the
amount of tax on the next paycheck (unless you are an Assisted Payroll subscriber and the
tax is handled by the payroll service).
To do this task
Create the employee's paycheck.
If this employee is assigned to a payroll schedule, create the paycheck using the payroll schedule. If you don't use payroll schedules, create the paycheck using unscheduled payroll.
Open the Preview Paycheck window by clicking the name of the employee whose paycheck you want to adjust.
In the Employee Summary section of the window, enter the difference between the
overwithheld amount and the current tax amount in the Amount field.
For example, if the overwithheld amount was $10.00, and the current tax
amount is $15.00, enter a value of $5.00.
Click Save & Close.
When you click Create Paychecks QuickBooks creates a new paycheck and corrects the year-to-date value.
If you withheld too much tax in a previous quarter, you need to file an
amended Form 941 or state form for that quarter. Check with your accountant,
the IRS, or your state tax agency for information about how to file an amended