Note for QuickBooks Payroll
Note for Assisted Payroll
If you have overwithheld employee-paid taxes in any previous quarter of this
year, create an employee liability adjustment that adjusts each tax by
the amount of the discrepancy.
Go to the Employees menu, choose Payroll Taxes and Liabilities, and then Adjust
In the Effective Date field, enter the last day of the quarter in which the
Under Adjustment is for, select Employee.
Click the Employee drop-down list and choose the employee whose tax liabilities you want
In the Item Name field, enter the payroll item for the employee-paid tax you
Calculate the adjustment amount by subtracting the actual amount withheld
from the correct amount. Enter the difference as a negative amount in the
Amount field. (A negative amount decreases the employee's total for this
For a tax such as social security or Medicare that has a company-paid
component as well as an employee-paid component, you can enter the adjustment
for the company payroll item on a separate line in the same window.
Click the Accounts Affected button. The Affect Accounts window appears.
In the Affect Accounts window, make sure Affect liability and expense
accounts is selected. Click OK.
In the Liability Adjustment window, click OK. The Account for payroll
liabilities window appears.
Choose an other current liability account (such as Owed to
Employees) so that you can reimburse the
employee. Click OK.