Apply a liability overpayment as a credit to payroll tax liabilities
This article explains how to apply a liability overpayment as a credit to payroll tax liabilities.
You will create a liability check and apply it to the next period.
You received credit for a tax overpayment paid through Write Checks for payroll not recorded in QuickBooks, and you want to apply the overpayment to tax liabilities that are recorded in QuickBooks.
To apply a credit for a payroll tax liability:
Create a liability check.
Click the Expenses tab and select the account where you want to apply the credit.
Enter the amount of the credit (only up to the amount of the check) as a negative figure in the Amount field.
Enter an explanation of the transaction to the memo field.
Click the Recalculate button to lower the amount of the check by the amount of the credit. If there is a credit balance remaining, you can apply it to the next period by repeating steps 1 through 4.