Overpayment of federal taxes

Due to the handoff between bookkeepers, the federal taxes for one 2-week pay period was paid twice.

Should the 2nd payment be posted to payroll liabilities or payroll expenses?

I have tried both, and neither one seemed to generate a 941 that reflects an overpayment.  I could always create the 941 PDF manually, but I want the QBO archive to be accurate. 

Answer

Neither Payroll Expense nor Liability.

It's not your Expense; it's your Banking.

It's not a liability that you had accrued.

And it isn't going to show in Payroll unless you paid it using Payroll Functions.

What you have is an Other Current Asset = amount owed back to you, or to be used as credit against what you Owe as gross, in the future.

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