User Support Forum

When adding the withholdings in the Pay Items menu, do you have to add the employer liability to each employee? The reason I am asking is that I have the correct tax tables added in, but the tax professional who does our W2 and 1099 (yes I know PC can do these) states that our withholding has been wrong. Any ideas on what it could be?

ngaham wrote:When adding the withholdings in the Pay Items menu, do you have to add the employer liability to each employee? The reason I am asking is that I have the correct tax tables added in, but the tax professional who does our W2 and 1099 (yes I know PC can do these) states that our withholding has been wrong. Any ideas on what it could be?

What are they saying is wrong? The employer liability account should be setup on the Item Description.

She is saying that we didn’t withhold enough on both the employee and employer side.

ngaham wrote:She is saying that we didn’t withhold enough on both the employee and employer side.

I'm assuming this is a tax like Social Security where both the employer and employee pays taxes based on a percentage of the income?

In which case, just like Social Security you do need to have an employer liability pay item in each employee pay item list.

If I didn’t have this in place, how would I go about fixing this for the past?

ngaham wrote:If I didn’t have this in place, how would I go about fixing this for the past?

Well you're going to have to make correction returns to whatever tax agency to deposit the employer amount missing. Again, not knowing what tax you're referring to I can't say much more than that.