Do This To Adjust Payroll Liabilities in QuickBooks Desktop

Have you noticed some discrepancies in your statements while processing payroll in QuickBooks? And now you are not sure how you can adjust payroll liabilities in QuickBooks Desktop? Then, do not worry; we have it covered for you here. In this particular blog, we will guide you through the methods to make adjust payroll liabilities in QuickBooks Desktop with step-by-step methods. So read the complete article and follow the given process.

Get help in adjusting payroll liabilities in QB Desktop, call the experts at the +18557380359

What are the Common Reasons that Lead to Payroll Liabilities Adjustments in QB Desktop?

Some of the common reasons for making liability adjustments are:

Need to fix a payroll item that has the wrong tax tracking type.
Need to make corrections to YTD wages, taxes, and deduction items
You need to change the amount for the company contribution items like HSA or 401(k) company match.

What are the Easy Steps to Adjust Payroll Liabilities in QuickBooks Desktop?

The various steps that you need to undertake while adjusting the payroll liabilities are given below:

Step 1: Finding the Payroll Discrepancies

Run a Payroll Check-up: This step is only for the versions of QB, including QuickBooks Desktop Basic, Standard, and Enhanced Payroll. For running a payroll checkup for a previous year, you are required to change your system’s date to the last day of that year.
Run Payroll Summary Report: You need to run a payroll summary report for the month or quarter you need to adjust the payroll for. While running this, take note of the number of payroll items that require adjustments.

Step 2: Adjusting the Payroll Liabilities

For this, go to the Employees, then Payroll Taxes and Liabilities option.
Then, choose the option to Adjust Payroll Liabilities.
Now, in the Date and Effective Date fields, you need to put the date of the last paycheck for the affected month or quarter.
In the Adjustment for section, search for Employee Adjustment and correct your employee’s YTD info. Then, choose the employee’s name.
Then, under the Item Name column, you need to choose the payroll item you want to adjust.
Now, enter the amount of adjustment.

If the item is under-withheld category, enter a positive amount to increase.
If the item is over-withheld category, enter a negative amount to decrease.

Now, under the Income Subject to Tax column, enter the amount if you want to make a wage-based adjustment.
After this, under the Memo option, enter a note about the adjustment for your reference.
Then, select the Accounts Affected, and hit OK.

Select Do not affect accounts if you do not need to change balances for the liability and expense accounts.
Select Affect liability and expense accounts if you want to also change the transactions in the liability and expense accounts.

Lastly, hit OK and close the Affect Account window.
Now, select the Next Adjustment option if you have any additional employees to make adjustments for. Otherwise, hit OK and save changes.

Step 3: Check If the Liabilities Adjustments are Updated

For this, you need to again run two reports:

Payroll Summary Report
Payroll Liability Balances Report

Read more : How to resolve QBDBMgrN not running

The Final Words!

Hope so, you will be able to adjust payroll liabilities in QuickBooks Desktop easily after following the steps mentioned above. In case of any other assistance, you can connect with our QB support experts by ringing the toll-free number +18557380359