Wrong State for Withholding Income Tax

Yes, Amradio49, you can make some adjustments to the state withholding without voiding these checks.

The efficient way to fix this in QuickBooks Payroll is to use the Adjust Payroll Liabilities feature. This lets you move the tax amounts from Idaho to Montana without touching the original net pay or bank register transaction.

Before adjusting your payroll liabilities, determine the exact amount of Idaho withholding that should be applied to Montana instead. Add the amounts of all four checks to calculate the total adjustments needed.

After that, proceed to create a Payroll Liability Adjustment.

Here's how:

1. Navigate to Employees and select Payroll Taxes and Liabilities.
2. Choose Adjust Payroll Liabilities.
3. Adjust the liability for Idaho withholding to reduce the incorrect amount and increase the liability for Montana withholding for the same amount.
4. Choose the correct effective date for the adjustment (the same as the last affected pay date) and select the appropriate accounts for the state taxes.

For a detailed walkthrough and additional information, refer to this resource article: Adjust Payroll liabilities in QuickBooks Desktop Payroll.

Please feel free to revisit this thread with any updates or further questions.

Hi there, Amradio.

I just wanted to follow up to check if the resolution we provided helped resolve your issue.

Please let us know if everything is now working as expected or if you’re still experiencing any problems.

We’ll be glad to assist further if needed.