The QuickBooks Desktop offers enhanced capabilities to perform various payroll-related tasks for its users. It has a Payroll service that streamlines various aspects of your work operations, such as sending paychecks, calculating taxes, and distributing employee salaries. But occasionally, you might find yourself stuck in some payroll-related errors that occurred due to some common errors or mistakes. These QuickBooks payroll mistakes can be financially detrimental to your business and result in legal consequences, so it is essential to correct them. Therefore, we have created this blog to help you troubleshoot this issue and understand the root causes for it as well.
If you are struggling with faulty data or common mistakes in QuickBooks, seek professional help. Call us at +1(800) 780-3064 to get help from a QB expert to overcome these types of issues in QuickBooks.
What is the Significance of Accurate Payroll for Small Companies?
You should ensure accurate payroll to ensure all your business processes run smoothly. Remember that even the small payroll mistakes in QuickBooks can lead you to big technical troubles. Moreover, it can dampen morale across the entire workforce when they are not paid on time or when discrepancies occur. As we discussed, this can also result in legal consequences if there are any tax discrepancies. Therefore, it’s advisable to click the payroll twice to eliminate any mistakes beforehand.
Other than that, make sure to accurately input all payroll details, such as employee ID and paycheck slips, to avoid this error. Next, let’s discuss some of the most general mistakes any business can make while utilizing QuickBooks Payroll in the next section.
Most Common QuickBooks Payroll Errors and Their Reasons
You should research and read about QuickBooks Payroll’s most common errors and learn how to resolve them. Other than that, from tax table issues to incomplete updates, this guide will help you troubleshoot these problems as soon as possible. QB Payroll users must address a variety of issues that can disrupt payroll processing. There are some common subscription issues, including errors PS038, PS034, and PS032, that commonly occur due to expired services, billing issues, or corrupt company files. Further, setup errors like missing payroll items or wrong configurations can occur during initial setup. Due to a faulty or incomplete update, users may face the QuickBooks error PS077 or 15243 that prevents them from updating the tax table. These updating issues may arise due to the disabled services or outdated components.
In addition, the calculation errors, such as wrong tax amounts or missing social security/medicare deductions, are often due to setup mistakes or outdated tax tables. Sometimes, you may face connectivity errors like “View My Paycheck Not Working” or server errors, steps with internet or configuration problems. Other recurring problems, such as payroll turning off automatically, restricted file access indicated by error codes 30159, 2107, and 9000, and failed direct deposits.
Some Common Payroll Mistakes in QuickBooks that Users Make
You might face many technical errors while working in QuickBooks, but there must be a reason behind these issues. Therefore, you should ensure your payroll is accurate and error-free to maintain their trust and confidence. Let’s discuss the most common mistakes a user can make while using the payroll.
- Poorly Maintained Records: As we have discussed many times, you should maintain accurate records of the employees’ information, including overtime, sick leaves, banking details, and hours worked. Failing to do so can lead to various technical troubles, which can harm your reputation among the employees.
- Delayed Payments: You may miss payroll deadlines while paying employees, leading to a poor, lethargic work environment.
- Inaccurate Calculations: When you make mistakes while calculating the overtime and leave applications during the salary period. This can also lead you to serious financial implications for both your employees and your company.
- Incorrect Tax Deductions: When you put any employee in the wrong tax category, they can end up paying the wrong amount of tax, which can impact the business and the employees.
Above, we have listed some generic mistakes many business owners usually make while running their payroll services. Now, let’s discuss some payroll mistakes and effective solutions to overcome various issues in QuickBooks Enterprise Payroll.
Top Ways to Correct Payroll Mistakes in QuickBooks Desktop or Online
Let’s delve into specific cases of payroll mistakes in QuickBooks with step-by-step guided solutions.
Scenario 1. Incorrect Employee Account or Routing Number
You might have set up the incorrect employee account or routing number in Payroll Direct Deposit. To fix this in both the Desktop and Online versions, follow the instructions below.
A. Modify Employee Banking Info in QuickBooks Desktop
Follow the steps below to modify the employee’s banking information in your QB Desktop.
- Start by launching the QuickBooks Desktop
- Next, click on the Employees menu
- Choose the Employee Center to access the employee list
- Here, choose the names of employees whose info needs to be corrected
- Then, tap on the Payroll Info tab
- Now, hit the Direct Deposit button
- The Direct Deposit window would open
- Here, tap on Use Direct Deposit for [employee’s name]
- Select from these two choices:
- Deposit in one account
- Deposit into two accounts
- Next, enter the following info:
- Bank Name
- Routing Number
- Account Number
- Account Type
- Tap on OK to save
- You should enter your direct deposit PIN when asked
However, if you are a QuickBooks Online user, you should implement the steps given below.
B. Modify Employee Banking Info in QuickBooks Online
Next, move forward and change your employee’s bank account or routing number in QuickBooks Online by following the instructions below.
- Start by selecting the Employees option
- Next, navigate to Payment method
- Now, choose Edit
- Here, enter the updated/correct banking information
- Lastly, tap on Save to finish
These were the instructions to resolve any banking-related mistakes in QuickBooks Desktop or online. Now, let’s move to the next scenario.
Scenario 2. When You Have Overpaid an Employee
Sometimes, while sharing out paychecks, there can be times when you could’ve overpaid an employee. This problem can arise due to an incorrect amount in the employees’ gross pay. In such a case, you should reduce employees’ wages in QB by following the steps below
- Start by creating the payroll item for reducing wages.
- Open QB Desktop
- Head to the Lists menu
- Choose Payroll Item List
- Next, click on the Payroll Item button
- Tap on the New option
- Now, select the Custom Setup
- Here, press the Next
- Then, tap on Deduction and hit Next
- Here, type in an easily identifiable name of the payroll item
- Select the Next
- Navigate to the Liability Account field
- Next, enter the same Expense Account that was used when the employee was overpaid
- Tap on the Next option
- Now, select a tax tracking type of Compensation
- Hit the Next button twice
- Here, select Calculate this item based on Quantity if the employee was paid hourly
- Select Neither if you paid the employees with a salary item
- Lastly, tap on Next and hit Finish
- Finally, include a new payroll item in the next paycheck
Note: Ensure to add that the deducted items are added to a paycheck with equal or more earnings than the actual amount, as QB can’t create a paycheck with a negative net pay.
Scenario 3. Correct the Direct Deposit
If the payroll mistakes in QuickBooks also encompass direct deposit errors. You can avoid a direct deposit paycheck error with the steps given below.
- Start by opening the QuickBooks Desktop
- Next, head to the Employees menu
- Now, tap on Edit/Void Paychecks
- Modify the Show paycheck dates from or through to the paycheck date you want to void
- Then, choose the paycheck, and then hit Void
- Enter Yes in the pop-up menu
- Tap on Void, then agree to the terms and conditions of voiding the paycheck
- Next, close the Edit/Void Paycheck window
- Here, access the Employees menu again
- Next, choose Send Payroll Data
- Lastly, finish it off by hitting Send
Carrying out the above steps will eliminate various types of payroll mistakes in QuickBooks Direct Deposit.
Scenario 4. Edit QuickBooks Payroll Mistake in Timesheet
When you saved your timesheet by mistake in the QB Online application for the wrong week, this could cause various kinds of issues in QuickBooks. To resolve this issue, you should follow the steps below.
- Start by tapping on the Plus (+) icon
- Next, choose the Weekly Timesheet
- Make sure to enter the accurate employee information
- Now, tap on the Weekly Period dropdown menu
- Here, choose the wrong week
- Hit the Trash (clear) icon to remove the hours from the wrong week
- Press Save and Close
- Lastly, repeat the instructions for every employee
The above methods will help you resolve payroll mistakes in QuickBooks timesheets.
A Quick View of Payroll Mistakes in QuickBooks Desktop or Online
Follow the table below to see the condensed version of this blog on the topic of resolving payroll mistakes in the QuickBooks application.
| Topic description | Sometimes, human errors can occur while working in QuickBooks Payroll. These mistakes can hinder your workflow and obstruct your business operations. |
| Different scenarios | Filling in the incorrect account or routing number of an employee, having overpaid an employee, direct deposit mistakes, or mistakes while maintaining the Timesheet. |
| Effective methods | Start by verifying and correcting the employee information, ensuring accurate wage and tax calculations, and checking the account details and direct deposit setup. |
Conclusion
This was all about the payroll mistakes in QuickBooks that users commonly make. Moreover, we have outlined the step-by-step instructions to help you specifically through various cases you may deal with. If you are facing technical difficulties while correcting payroll mistakes, you should seek professional help. Call us at +1(800) 780-3064 to speak with a certified QB expert who will be happy to help you.
Frequently Asked Questions (FAQs)
Q. How can you correct the payroll mistakes in QuickBooks?
A. To fix the payroll paycheck in QuickBooks Online, navigate to the Payroll and tap on Employees. Next, select Run Payroll. Move forward by modifying the Pay Date and Pay period. Then, choose the employee and include the corrected amount. Ensure the submission is marked as Paper Check and press Submit Payroll. Lastly, head to Taxes and select Payroll Tax followed by Payments. Lastly, check the liabilities in and press Pay.
Q. How can you edit my payroll in QuickBooks after submitting?
A. To modify a paycheck in payroll after filling it, then make sure that it hasn’t been submitted via direct deposit. After that, choose the Paycheque list and filter the dates you wish to edit. Select the paycheque and tap on the dropdown menu under the Action column. Hit Edit and ensure the necessary changes. Lastly, complete the process by hitting Save.
Q. What are the most common payroll errors?
A. QuickBooks Payroll helps users perform various payroll-related business processes seamlessly. But sometimes, users may face various types of technical errors while using QuickBooks Payroll, including errors PS038, PS034, PS032, PS077, or 15243. There can be a number of connectivity issues, such as error code 30159, 2107, 9000, and failed direct deposits that users often encounter.
Gabby Taylor, combines financial expertise with literary prowess. With over a decade in finance, she crafts insightful narratives on navigating fiscal complexities