CRA sent a letter with an overpayment amount to be deducted in the next Payroll tax payment. How do I adjust the payroll tax payment to reduce the overpayment amount?

Hi heritagecleaners,

It's great to see you reaching out in Community.  Welcome!  QuickBooks Online Payroll enables you to resolve an overpayment when notification has been received from the revenue agency.  I'll be happy to show you how!

Follow these steps to resolve the overpayment;

1. Go to Taxes and select Payroll tax

2. Click on the Pay option in the Actions column

3. In the Federal Taxes section, hit Record payment to check the overpayment. The overpayment appears as negative amounts.

Note; If you wish to obtain a refund or want to apply your overpayment to the next liability period, you can do so by contacting us. To have the refund credited to you, you will need to contact CRA as well.

Feel free to reach out again, if you have any other questions.  WE would be glad to assist!