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How do I adjust my year-to-date figures for overwithheld taxes?

If you've overwithheld taxes for an employee, first correct the problem causing the overwithholding in your employee record or the payroll item setup.

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 service, delete 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

  1. Create the employee's paycheck.

  2. Open the Preview Paycheck window by clicking the name of the employee whose paycheck you want to adjust.

  3. 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.

  4. 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 return.

See also

KB ID# H_PAY_YTDADJUST
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PPRDQSSWS400 9138 Pro 2017 cd7379