How do you handle payroll tax overpayments being carried over from a prior year?
We have a payroll tax overpayment which is being carried from 2018 to 2019, and when the liability check is created for January payroll, we have offset withholding to the overpayment for a net -0- check. (The overpayment was properly debited to the withholding liability account in 2018.) However, when doing so, the program is showing we still have unpaid liabilities. How can we fix this? It worked fine in 2018 for the overpayment offset entries, but is no longer working in the new year.