We live in a digital world where everything is available on our fingertips. Internet has an answer for almost any problem that one might face. When you own a business however small or large it maybe, there are financial issues that need proper assimilation on your behalf. But will it be considered ideal to hire someone new for managing your accounts when there is a software like QuickBooks at your disposal? This online accounting software was developed by Intuit which is an American business and finance software-developing company. They developed it in collaboration with Reckon. Using QuickBooks, you’re able to manage your accounts, run payroll checkups for your employees, get help for any issue from a supportive community and there are many more aspects to this software.
Ways to go about the task:
QuickBooks Services makes sure that you have smooth-running accounts with various inbuilt features in the software. You can view your sales and manage them remotely from anywhere in the world. The cloud storage is there to store all your important data, check your reports and QuickBooks also keeps track of your taxes and their payments. They have 24/7 online experts available at your service, to give you step-by-step solutions whenever you’re stuck somewhere. The software has several packages to meet your needs for the payday. Creating and delivering payrolls are very important part of a well-established company, for this purpose QuickBooks has perfect schemes to run smooth payrolls for your employees. You can also adjust or correct liabilities using this software. If by any chance there is some error in the liabilities then you can use liability adjustment to fix them. You can use this feature to correct Year To Date & Quarter To Date data. QuickBooks Online Payroll Service will assist you in this task if you find it difficult.
If you have Basic, Standard, or Enhanced Payroll, you follow the steps given below:
Find payroll discrepancies. It is necessary to get the information to make the changes in the liabilities; see the following steps:
- Run a payroll checkup. This will help you to find the problem and also verify the current structure of your payrolls. You will also be able to view your employee records and discrepancies. Suggestions on how to fix it will also be shown to you.
- Run a Payroll Summary report. You can do this for the quarter of the year that you need to adjust. Payroll Item or items will show you the amount that needs adjusting.
Adjust your payroll liabilities.
- You will observe Payroll Taxes & Liabilities in the Employees menu.
- Choose the option Adjust Payroll Liabilities.
- Now in order to complete the fields given in this, you need to follow these tips:
- After you find the quarter that contains the problem, use the same date as the last paycheck of that quarter. Or today’s date is this is the quarter.
- You can use the Effective Date to calculate the amounts on your 940 and 941 forms and your Payroll Liability Balance Report.
- If you are correcting the item which is company-paid then select Employee Adjustment this will update the YTD information reported on the employee W-2 form.
- If you select the Company Adjustment then the balance is removed from the Payroll Liability Balances Report.
- Next select the employee.
- You can now complete the taxes and liabilities fields.
- First click on the Item name that you want to adjust.
- Next enter the amount to be adjusted, use positive to increase and negative to decrease the amount.
- You do not need Wage base even if you override a tax amount on a paycheck.
- The Income Subject to Tax field is also in relation to wage base.
- You can use the Memo field for any future reference that you might need.
- Now select Amounts Effected and then click on OK.
- You can also select Do not affect accounts to leave the balances unaffected for the liability & expense accounts.
- You can also select Affect liability as well as expense accounts to write an adjusting transaction in the affected liability & expense accounts.
- Lastly repeat this for any other employees and select OK.
Now run you should run the Payroll Summary Report again to make sure that the error is removed.
In case that you have already paid the liability then you need to make the corrections in the Quickbooks liability check.
- Go to Banking and then click on User Register.
- You can now choose the register that you use for the payrolls and then click on OK.
- Right click your cursor on the Liability check and then select Edit Liability Check.
- Now match the changes that you made with the Payroll Liabilities.
- Click on Save and Close and then Yes.
Now that you have corrected your payroll liabilities and you can view them or use them for future reference and make the necessary payments.