 QuickBooks Online 2022 Payroll Adjustment. Get ready because it's go time with QuickBooks Online 2022. Here we are in our get great guitars practice file. We set up with a 30 day free trial, holding down control, scrolling up just a bit to get to that one to 5% we're currently in the homepage, otherwise known as the get things done page in the business view, as opposed to the accounting view. If you wanted to go to the accounting view, it's something you can do by going to the cog up top, going down to the switch to the accounting view. We will be toggling back and forth between the two views either here or by jumping over to the sample company file. So we can look at what those differences are between where things are located in the two views. I'm going to go to the tab up top, right click on the tab up top and duplicate the tab. We're going to be taking a look at simply the trial balance this time, since we took a look at some of the items for payroll last time, we are in essence going to do an adjusting entry, the trial balance being a little bit easier for us to navigate in, as it will basically have the balance sheet and income statement accounts in it. So we're going to go into the business overview here, and we're going to go into the reports section, going to type in the trustee trial balance, the TB trial balance. And this is in essence, the balance sheet on top of the income statement, closing up the hamburger, it's going up top and doing the range change from 0101222123122 and running the report, holding control, scrolling up just a bit. Now I'm going to do an adjusting entry, which is going to help us out when we do the bank reconciliation process. And I'm going to adjust something with the payroll paycheck, so it'll tie out to a worksheet that we did before that we used to make the bank statement, which we're going to need for the reconciliation process. Now note that you wouldn't typically want to do this in practice because any adjustments to payroll would be something you would want to run through payroll so that all your payroll reports and everything line up property. This is just simply purely for the practice problem purposes and will actually cause a difference between some of our payroll reports and what is going to be in the system, but it'll allow us to match everything else from a financial statement perspective and tied to the bank statement. So in other words, if I look at the bank statement that we have already made, this check three is for 3-5-7-2-70 that I would like to have in place so that we can reconcile to it when we get to the bank reconciliation component of the course. There's an adjustment or difference with the payroll check because when we process the payroll check in a manual process in our worksheet, we calculated or miscalculated in essence one of the items which in the system on payroll, they calculated the Medicare and we have that difference which is accounting for the difference or the problem. So I'm gonna go back on over and just show you what that difference is which I think is useful just to take a look at how the payroll is calculated. I'm looking at check number 10-12 where we have a difference on our bank statement that we're going to be using to what's on the books. If I go back to the books just to take a look at it and go to the first tab and actually let's go to the second tab and just drill down on the cash. If I go into the checking account, I'm looking at this check down here for Adam. It's here at the 351270 and on our bank statement, it's 357270. So we've got that difference that we want to account for. That difference is due to the payroll calculation. This is just a recap of the payroll calculation, gross wages. We took the FIT at the 720 and so we put that in place. We'd get that from the W-4. Social security and Medicare. Social security is typically on the employee side. The wages times .062. Medicare is the wages times .0145. This Medicare calculation is the thing that was gotten wrong which is causing our bank statement number to be off because we put it in place here at the 6.46. So you can see there's a decimal problem issue here most likely which caused that miscalculation. And then if this Medicare is off, we're also going to have a difference in terms of the employer taxes which are typically matched at the same amount which would typically be increasing the Medicare, the Medicare liability as well as the payroll taxes. So if I compare that to what we created in the worksheet and the practice problem that we made the bank statement with the Medicare number is off here and the Medicare number is off here. If I take a look at the differences between those calculations, then we're gonna have a difference. There's that $60 difference in the paycheck. In other words, if I go back on over here and take a look at the trustee calculator, pulling up the trustee calculator, we've got the paycheck at the three, where's Adam Hampt 3512.7 minus if I go back on over to my worksheet, or let's go to the bank statement, we've got the paycheck minus the 3572.7 and there's a $60 difference in our paycheck due to that calculation error that was really an error here, but we're gonna keep it for our practice problem. So there's a $60 difference in the net check here we've got to deal with and the other side is gonna go to the payroll liability, it would be included in the payroll liability and then we also have the employer side of things which we have not yet paid, which would cause a difference in the payroll tax expense as well as a difference in the payroll liability. So we got a total difference in the payroll liability of 120, a difference in the paycheck of the 60 and then a difference in the payroll tax of the 60. So I'm gonna adjust for this and again, this is not an adjustment you would do basically in practice just for the practice problem purposes. I apologize for having to do it, but I think it'll make our bank reconciliation work well. So I'm gonna go back to my trial balance and I'm gonna adjust that check. I'm gonna do that by going to the first tab. I'm gonna make a couple different adjustments to do this. I'm gonna go to the bookkeeping down at the bottom which if you were in the accounting view would be in the accounting area. I'm gonna then take a look at our chart of accounts and then close up the hamburger. I'm gonna go into my check register or view the register and I'm gonna enter this adjustment basically as the same check number. So it'll be easy for us to see in the reconciliation. So I'm gonna basically write another check. I'm gonna say let's enter a check and I'm gonna call it an actual check and I'm gonna put it on the same date, 131 and I'm gonna make the check number 12 which will be 1012 to match this check number here. I'm gonna put the same name, Adam Hamilton. And so it's not an actual payroll check running through payroll but this is our adjustment just for the practice problem to adjust payroll to worksheet to match bank statement. We're going to say and the payment amount is gonna be $60 and so and then the other side is gonna go to payroll liabilities. It's gonna go to payroll liabilities, the federal taxes, payroll liabilities. So I'm gonna save that and so the check number already exists, okay, that's okay because that's what we're gonna do for our practice problem. I'm gonna go back to the first tab or the second tab and refresh it, run it, go into my cash account here and now when I reconcile this thing I'm gonna hold down control, scroll down just a bit. We're gonna have those two items that I can check off together to match out the amount that's on the bank statement. Now this threw us off, this isn't something you'd wanna do typically in practice if you had some kind of adjustment or difference between something went wrong in the payroll you basically wanna delete the payroll and put it back in the payroll correctly because this will actually throw off the sub reports for payroll and the liability of reports that are gonna be connected to the payroll. But again, we're gonna do it for this practice problem purposes so it'll tie out to our worksheets so that we can match it up to some of the other stuff that we put together that will come into play in the future. Again, I apologize for having to do that but that's gonna be the first adjustment. Then we've got the second one which is gonna be adjusting the employer side of the taxes which aren't affecting the payroll at this point in time it would be in the payroll tax area and the other side would go into the liability. So there is no transaction that's specifically related to that or no form. So I'm just gonna enter that with a journal entry and we can do that with a, you can enter the journal entry a few different ways. The easiest way might be to go back into our register. I'm gonna go back into the chart of accounts and maybe look at the register for the payroll liability register. So I might go down here and say, give me the liability register in my chart of accounts. So I'm in assets and then liabilities and so we're in the payroll. So maybe I can use this register although this register is tied to like a widget to help us process the payroll which will probably cause us problems in the future when I do this but we're gonna do it here. We're gonna say, okay, then I'm gonna make a journal entry. So I'm gonna make a journal entry here in the dropdown and I'm gonna say this is as of the 31st and I'm gonna say that this is just gonna be a memo to adjust payroll to reconcile to worksheet and a bank statement for practice problem. So it's just a practice problem type of thing here. And it's gonna be a decrease of then the $60. $60 and then the other side is gonna be going to the payroll taxes. I'm gonna type in payroll and payroll and I'm looking for the payroll taxes on the expense side of the thing. So here are the expenses, taxes, payroll taxes, enter that, save it, okay. And then I'm gonna go back to our trial balance and see what we've got. If I take a look at the trustee trial balance, I'm gonna refresh it, running it again, holding down control, scrolling up. We looked at the cash side of things. The other side is gonna go into the payroll liability for the federal. So that's the other side of the cash transaction and this journal entry for an adjustment of $60. So there it is, those two adjustments of the $60. So if I go back into my worksheet, then that was my adjustments for the total of the 120. So we have that and then the other side, if I go back on over, going back to our summary is gonna be on the expenses down here. If I go into the income statement side of things and that's gonna be for the payroll tax expense. And then we have that adjusting entry there for the $60. Okay, so that is that. Again, you don't want to do this. Typically this is not the type of adjustment you would do if you were processing the payroll in practice because any adjustment you would want to do, you would want to fix within the payroll system so that the subsidiary reports and everything will tie out to the payroll system. We're doing it here just for the practice problem purposes due to the fact that we already have the bank statement set up for when we get to the bank reconciliation component and we want that to tie out and match out so we could tie out to some other things as we go forward in the practice problem as well. So if we go back into the trial balance, this is where we stand at this point in time. If you're following along with the practice problem, this is where we're at. If you have any differences, then try changing the date range to see if it's a date issue and when we will then take a look at some transaction detail reports at the end of the section, which is often good to diagnose any differences.