In QuickBooks, running a Payroll check-up will not automatically update the wage base of the employees and it is required to be adjusted manually only. In this article, we will see how we can change the taxable wage base in QuickBooks. Under the wage base correction feature in QuickBooks one can correct the following features:
- Any adjustment made in the tax item in the middle of the year and which affects the tax base of the employee can be corrected here.
- The wage base of the employee exceeds the annual limit and needs correction.
- The default tax settings were changed by you which is now giving incorrect tax calculation can be now re-corrected her.
- Any change made in the middle of the year will not give retrospective effect automatically and will need to be adjusted manually.
Steps to change the taxable wage base in QuickBooks.
- First of all create a Payroll review report: You can do this by going to Reports Menu and select Payroll Review Report from the Employees and Payroll submenu.
- Customise your Payroll Review Report: Customise your report to display only the affected employees and the tax items. You can do this by following the following steps.
- Under the Payroll review report, select customize the report.
- Click on display and select the date range from the drop-down menu list.
- Click Filters tab and check only the affected items or individual employees or both as the case may be.
- Manual verification of tax calculation: Based upon the wage base and the tax rate, verify manually that the tax calculation is being done correctly.
- Based on the report decide the changes that need to be made to the wage base and tax rate.
- Open the liabilities adjustment window by going to the Employees menu and selecting Adjust Payroll Liabilities under the Payroll Taxes and Liabilities menu.
- Make the necessary changes in the effective date.
- Click on employee adjustment and select the affected employees from the drop-down menu.
- Under the Taxes and Liabilities section select the tax items that need adjustment and make the necessary changes.
- Also, enter the reason for adjustment in the Memo column for future reference.
- Click on accounts affected and select Affect liabilities and expense account or do not affect accounts as the case may be.
- If there are more employees to be adjusted click on the Next Adjustment button or else click on OK to save the changes that you have made.
- Refresh the Payroll Review Report to see if the changes made have been properly applied.
Thus by following the aforesaid steps, you can change the taxable wage base in QuickBooks. If you are facing any problem in following any of the aforesaid steps or you have any doubts understanding the changes that require to be made kindly get in touch with our QuickBooks Technical Support team on our Toll-Free Number ✆+1-800-796-0471. We have a team of trained technical professionals who can handle any QuickBooks related error like a pro.
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