Payroll liabilities show as overdue or due when paid
In the Pay Scheduled Liabilities window, some of the liabilities are showing an incorrect Overdue status, or show due when they have been already paid.
This issue can occur for any of the following reasons:
* Date on the liability check is after the actual Send By date.
* The amounts of the liabilities on the issued payroll checks are based on the calculation of the tax due from the tax form (for example, the 941 form), instead of the amount of the tax due in QuickBooks.
* Liability checks written in the Write Checks window rather than in the Pay Liabilities window.
* Date is incorrect or amount discrepancy.
Please follow these steps to determine the cause of the incorrect Overdue status and the resolution:
1. First, verify that the date on the liability check is before the Send By date:
* If the date is after the Send By date, correct the date.
* If the date is before the Send By date, then continue.
2. Locate the vendor who received the problem tax liability checks.
3. From the Lists menu, choose Payroll Item List.
4. Locate the tax liability that is showing the incorrect Overdue status, and make a note of the vendor that appears in the Payable To column. (This may be the Tax Agency or a bank.)
5. Run a Vendor Quick Report on this vendor:
1. Click the Vendor Center and locate the vendor you identified in step 1.
2. Right-click the vendor and choose QuickReport: [Vendor Name].
3. Select This Fiscal Year from the Dates drop-down list and ensure that the From date is set to 01/01/[current year] and the To date is set to 12/31/[current year].
6. Look for Check in the Type column on or after the problem date range. (This would indicate the liability check was written in the Write Checks window.)
7. If you discover that the liability checks were written in the Write Checks window, correct these checks by following the steps outlined in "Incorrect scheduled liability payments".
If the liability crosses over from one year to the next, with the paycheck date in the latter and the liability payment in the former, this could cause the liability to show due, when it has already been paid.
If your issue is still not resolved, please follow these steps:
1. Click the Employee Center, click the Transactions tab, and then select Liability Checks.
2. In the Name column, locate the vendor in question, and manually add all the amounts for the liability checks listed for this vendor.
Note: Make careful note of any voided liability checks and do not include them in the total.
3. Compare this amount to the amount listed in the payroll summary report covering the same dates. If there is a discrepancy in the dates, make any necessary corrections.
4. Check the Payroll Liabilities Balances report:
1. From the Reports menu, choose Employees & Payroll, and then choose Payroll Liabilities Balances.
2. If a negative amount appears, this indicates the taxes were overpaid and a credit exists.
3. If a positive amount appears, this indicates an Overdue status exists.