Negative Numbers Display on the Liability Report
This troubleshooting guide addresses the issue of negative numbers appearing on the liability report and an employee showing up under Social Security Tax on the 941 form. The guide covers the possible causes, including tax-free wage setup, adjustments to the employee's W2's total, and voided checks. It also provides a step-by-step remedy to correct the issue.
The liability report displays negative numbers, and an employee displays on the 941 under Social Security Tax.
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Products affected: Payroll
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Versions affected: Any
This error occurs because of three reasons.
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The employee's wages are set up as tax-free wages and the adjustments are set up after taxes.
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Someone made an adjustment to the employee's W2's total.
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There are employees with voided checks.
Contact an accountant or tax adviser to see how you should handle this and which fields to change. Then, edit the employee's W-2 totals and correct the tax flags for pay types and adjustments.
- Under Manage Records, click the Period End Procedures tab.
- In the drop-down list, select Add/Edit W-2 Totals and click Go.
- To select the affected employee, click Lookup.
- Under Transaction Information, click on the quarter the W-2 is for, or select YTD to apply all totals to the 4th quarter.
- Click in Boxes 1 - 19 to edit them. You cannot edit Boxes 7, 8, 10, and 11.
- If necessary, under Transaction Information, edit Total Gross, Additions, Deductions, and Net Pay. You can edit total taxes by changing the tax amounts in boxes 2, 4, 6, 17, and 19.
- When finished, click Apply.