Note for QuickBooks Payroll
Note for Assisted Payroll
If you have underwithheld employee-paid taxes, create an employee liability
adjustment that adjusts each employee-paid tax by the amount of the
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
tax discrepancy occurred.
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, choose the payroll item you want to adjust.
Calculate the adjustment amount by subtracting the actual amount withheld
from the amount you should have withheld. Enter the difference in the Amount field. (The amount should be positive, because you want to increase the
employee's liability for the tax.)
Click OK to close the warning message about creating a paycheck.
Click the Accounts Affected button.
In the Affect Accounts window, make sure Affect liability and expense
accounts is selected. Click OK.
In the Liability Adjustments window, click OK. The Account for employee
liabilities window appears.
Choose an asset account (such as Employee Loans) so that
you can be reimbursed by the
employee. Click OK.
Alternatively, you can enter a "gross-up,"
although this method is more costly to your business because you are not reimbursed by the employee.