If you have overpaid your payroll liabilities in prior quarters (due to
rounding errors), you may have a small negative balance on your payroll
liabilities report. If the amount is less than $1.00, you may want to adjust
your payroll liabilities so that the payroll liabilities report shows a zero
Go to the Employees menu, choose Payroll Taxes and Liabilities, and then
click Adjust Payroll Liabilities.
Change the Effective Date field to a date in the previous period.
In the Item Name field, choose the payroll item.
In the Amount field, enter a negative number (the amount of the
(Optional) In the Memo field, enter a note to yourself about the
The note will appear on any detail payroll reports that include this
If the amount you overpaid is significant, you can get a refund from the
government and enter it in