Common Mistakes in QuickBooks Payroll and Their Solutions

Joan Martin
12 hours ago
3 min read

QuickBooks is a software that has made significant contributions to helping businesses- whether large or small- manage their finances and accounting. However, even a minor oversight can result in substantial financial losses. For this reason, we have put together this blog post, in which we have outlined several key points; you must ensure that these are configured correctly to avoid making these common mistakes in QuickBooks Payroll. So, let's dive straight into this blog and read every single line carefully to ensure that accounting operations can be carried out seamlessly.

If you are stuck with payroll issues and feel like there is no way out, speak to a professional immediately at 1.855.738.2784 and get it fixed.

3 Common Mistakes in QuickBooks Payroll And Learn How to Resolve Them

Below, we have listed some common payroll issues that occur in QB. Let’s have a look at each of them:

Problem 1: Mistakes in direct deposit

Mistakes in direct deposit are one of the issues in payroll that prevent you from processing payroll. Let’s see how to fix it:

Open QuickBooks Desktop and move to the Employees menu.
Choose Edit/Void Paychecks.
Change the Show paycheck dates from/through to the paycheck date you want to void.
Click on the paycheck.
Choose Void.
Choose Yes in the pop-up menu.
Select Void and agree to the terms and conditions of voiding the paycheck.
Close the Edit/Void Paycheck window.
Open the Employees menu.
Select Send Payroll Data.
Choose Send and complete the process.

Problem 2: In case you overpaid an employee

Due to an incorrect amount in their gross pay, you might have overpaid an employee. Let’s follow the steps below to resolve it:

First, you will need to create a payroll item for reducing wages.
- Open the QuickBooks application and move to the Lists menu.
- Choose Payroll Item, List.
- Click on Payroll Item.
- Choose New and then click on Custom Setup.
- Select Next.
- Tap on the Deduction and hit Next.
- Enter the name of the payroll item, followed by Next.
- Head over to the Liability Account field.
- When the employee was overpaid, enter the same Expense Account that was used at that time.
- Select Next.
- Here, you need to select a tax tracking type of Compensation.
- Hit Next two times.
- If the employee was paid on an hourly basis, select the Calculate this item based on Quantity option.
- If the employee was paid with a salary item, select Neither.
- Hit Next, and then Finish.
At last, you need to add the new payroll item to your next paycheck.

Problem 3: Modify the QB Payroll mistake in the timesheet

In case the timesheet in QBO is mistakenly saved for the incorrect week, fix it with the steps given below:

Select the Plus(+) icon.
Choose a Weekly Timesheet.
Make sure that you enter the correct employee.
Hover over the Weekly Period dropdown menu.
Choose the incorrect week.
Press the Trash(clear) icon to delete the hours from the wrong week.
Select Save and Close.
Repeat the steps for every employee.

There are other issues in QuickBooks that arise while processing payroll, such as the series PSXXX (QuickBooks payroll error PS036, PS033, PS032, etc.) and series 12XXX (12021, 12002, 12003, etc.).

The Bottom Line

This blog covers common mistakes in QuickBooks Payroll. We have highlighted the three most often caused problems along with their solutions. If you want more related information, give a call to 1.855.738.2784 and get instantly connected with an expert.

You may also read: How to Fix QuickBooks Error 1606?