When you enter a paycheck that is out of balance, and if you didn't select the Adjust out of balance paychecks by applying Diff+/- to Fed W/H checkbox, the Out of Balance window opens.
Note: If you did select the checkbox, QuickBooks adjusts the paycheck for you.
Decide how you want to adjust the paycheck, and click the appropriate button in the window.
To do this task
Choose one of the following in the Out of Balance message window:
Click this button:
Apply Diff+/- to Fed W/H
Apply Diff+/- to State W/H
(Only appears if this employee has a payroll item for state withholding.)
A different amount, or combination of amounts
Let me Adjust Manually
Then decide which amounts on the paycheck to adjust by Diff+/-.
You can adjust other fields on the paycheck besides (or in addition to) Fed W/H and State W/H, as long as the adjustments add up to Diff+/-. Change paycheck amounts that appear in the After-the-Fact Payroll window, or click the View/Edit Detail button to go to the Preview Paycheck window and adjust other amounts.
If you prefer, QuickBooks can automatically adjust out of balance paychecks, so that you don't have to choose how to do it each time.
Before you begin to enter after-the-fact paychecks, under Calculation Methods at the top of the After-the-Fact Payroll window, click the Adjust out of balance paychecks by applying Diff+/- to Fed W/H checkbox.
This prevents the Out of Balance message window from appearing every time you enter an out of balance paycheck. Instead, QuickBooks automatically applies the difference between Enter Net Pay and Calculated Net Pay to Fed W/H.
After-the-fact payroll overview
Enter and delete after-the-fact paychecks