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    Apply a liability overpayment as a credit to payroll tax liabilities

    Article ID: 1000121


    This article explains how to apply a liability overpayment as a credit to payroll tax liabilities.

    Expected Outcome

    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.

    For instructions on creating a liability check, see Setup and pay scheduled and custom payroll liabilities.

    Click the Expenses tab and select the account where you want to apply the credit.

    You might want to ask your accountant which account to select so the credit is correctly applied in your tax forms.

    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.

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