Adjust the payroll liabilities in QuickBooks for the company

  • From the Employees menu, select Payroll Taxes and Liabilities, and then Adjust Payroll Liabilities .
  • Change the Date to date that the adjustment is for.
  • Change the Effective Date to date that the adjustment is for. The effective date will depend on whether the adjustment should be reflected in the period that it occurred or in the next remittance period.
  • In the Adjustment is for section, select Company.
  • In the Item Name drop-down, select the payroll item you wish to adjust.
  • To adjust an underpayment, enter a positive amount of the adjustment.
  • Enter an explanation in the Memo field, if desired.
  • Click the Accounts Affected button.
  • If you want the payroll adjustment to affect accounts, select Affect liability and expense accounts. Otherwise, select Do not affect accounts.
  • Click OK to close the Affect Accounts? window.
  • Click OK again to record the adjustment.

 

Adjust the payroll liabilities for the employee:

  • From the Employees menu, select Payroll Taxes and Liabilities, and then Adjust Payroll Liabilities.
  • Change the Date to date that the adjustment is for.
  • Change the Effective Date to date that the adjustment is for. The effective date will depend on whether the adjustment should be reflected in the period that it occurred or in the next remittance period.
  • In the Adjustment is for section, select Employee.
  • Select the Employee from the drop-down list.
  • Select a class from the Class drop-down list, if applicable.
  • List the payroll items that will be adjusted under Taxes and Liabilities with the corresponding amount. To adjust an underpayment the amount will be positive.
  • Enter an explanation in the Memo field, if desired.
  • Click the Accounts Affected button.
  • If you want the payroll adjustment to affect accounts, select Affect liability and expense accounts. Otherwise, select Do not affect accounts.
  • Click OK to close the Affect Accounts? window.
  • Click OK again to record the adjustment.