In the QuickBooks Desktop payroll, it is possible to accurately adjust YTD (year-to-date) additions or the deductions on any particular paycheck, only when:
- An improper tax tracking type is used in the payroll item.
- An accurate tax tracking type is used in the payroll item, however, the client altered the checkmarks in the specific tax item window, leading to wage and tax base calculation inaccuracy.
Note: You can correct the next paycheck of the same year, only if it is for wages.
What is a YTD payroll?
The money which is spent on payroll from the commencement of the fiscal year to the current date of the payroll, it is called a Year-to-Date payroll. This payroll depends on the gross salary of the employee. YTD payroll also comprises the money given to independent contractors.
In simple words, it is the gross income of the employees. In regard to business, it is all the earnings plus the payments which employees earn in the present year.
Why is YTD in Payroll is crucial?
YTD aids you to differentiate the employee expenses from the annual budget for costs so that a business accountant can compare and know the actual payroll expenses and the total expenses. It also helps in the prediction of tax liability.
How to adjust YTD gross in QuickBooks?
- In the QuickBooks account, click the Help menu and select About QuickBooks. Select the Ctrl+ Shift to open the specific YTD screen.
- In the YTD amounts screen, fill up the YTD entries and tax payments
- Only enter the document you need in YTD history, and select Next
- Enter the date you wish your YTD entries to impact your account when prompted. Also, add the estimated payroll date in all the boxes and choose Next.
- Add the YTD summaries of the particular employee.
- Select an employee from the list and choose the Enter Summary tab to click open the window that says YTD adjustment.
- YTD for the last year is added as a lump sum for each employee and the present year YTD is added as per employee payroll.
- Adjust the particular dates on the top right of the box
- Add the wage information in the particular Earning Items box
- Choose Show Wage Base to put in a column to showcase the taxable income amount for each payroll item.
- After the first entry, choose the Next Period button, and choose OK to save the work.
- Select Finish and then close the screen
The above-mentioned steps can be a bit tricky for someone who is new at this. That is why it is recommended to hire the services of a professional for the same.