If you're an Assisted Payroll subscriber, you cannot adjust the liability
balance for liabilities paid by Assisted Payroll (federal and state tax liabilities).
However, you can adjust the liability balance for local or other taxes not supported
by Assisted Payroll.
If you're not an Assisted Payroll subscriber (or are in the process of
signing up for it), you can enter an adjustment for any payroll item.
For example, after you prepare a payroll tax form, you may discover that your
balance for a liability payroll item needs to be adjusted. Or, while going
through the wage and tax verification process during Assisted Payroll signup,
you may need to enter adjustments.
Liability balance adjustments change the amounts that QuickBooks shows in
your payroll reports.
Go to the Employees menu, choose Payroll Taxes and Liabilities, and then click Adjust Payroll Liabilities.
In the Date field, enter the date for which you are making the
Note: QuickBooks prefills today's date, but you should enter the
date that you want the adjustment to be effective. Otherwise, this item will
not show up in the appropriate Payroll Summary Report.
In the Effective Date field, enter the date that you want this adjustment to
affect your liability balance.
QuickBooks uses this date to calculate amounts on your Forms 940 and 941 and
on the payroll liability balances report.
Choose whether to associate this liability adjustment with the company or a
For example, if you overaccrued federal unemployment tax (FUTA) for an
employee, click the Employee option and choose that employee's
name from the drop-down list.
In the Item Name field, choose the payroll item.
In the Amount field, enter the amount of the adjustment.
To increase the amount owed, enter a positive number in the Amount field. If
you chose to associate this adjustment with an employee, QuickBooks displays a
message that you should create a paycheck instead.
To decrease the amount owed, enter a negative number in the Amount field.
(Optional) In the Memo field, enter a note to yourself about the
The note will appear on any detail payroll reports that include this
Click Accounts Affected to check or modify the setting, and click OK.
Should you affect your
If you need to adjust an employee's
wage base, click the Show Wage
QuickBooks adds a Wage Base column to the window. You rarely need to change
an employee's wage base. Even if you overrode a tax amount on a paycheck,
the employee's wage base is probably correct.
When you've finished adjusting the liability, click OK.
Verifying payroll liabilities