Payroll reports and Balance Sheet do not match

[Belinda]

We just recently updated to Version 10. We were comparing payroll reports to the balance sheet liability section for payroll taxes. We found they do not match. Especially social security, medicare and state.

Account activity reports match payroll reports. We have had no problem in the past with these reports matching.
Any ideas?

[JohnDMeyers]

If you could provide a section of the account activity in an account that doesn't match, that would be helpful in determining what is going on.

Either that, or the actual account that isn't matching up.

You should check your payroll item to see which accounts are supposed to be updated. It's possible that an account number that worked before is acutally a different account number in ver 10, but that is just a wild guess. I would need to see a little more data to figure this out.

[Belinda]

Thanks for the response. We have figured out that we had deleted two paychecks in unposted transactions and then voided the same two checks in payroll module at a later date. Our payroll reports were correct but the balance sheet and income and expense sheets had accounts with incorrect balances. We found this by setting up books on another computer and voiding all payroll checks for the month. This left us negative numbers on the balance sheet (liability accounts for payroll). July is the first month of our fiscal year, so the error was easy to find after setting up the second set of books and it was easy to figure which two checks.

Belinda

[JohnDMeyers]

At some point, changes in the tax law will cause everyone to have to rethink their deductions.

And, earlier this year, the tax tables were rearranged to give some people more take home money. Those weren't tax rebates. Those were a rearranging of your withholding to put more money back into your paycheck. Money that you may have to go toward your taxes at the end of the year.

So, it's hard to say, until all the new taxes have taken effect, how to plan for the optimum withholding amount.

Here is a link to the W-4 worksheet that you give to your employer to determine your withholding.

http://www.irs.gov/pub/irs-pdf/fw4.pdf