QB Issue Resolution:
I’m not sure what are all the reasons for this, so let’s review a few points.
“because the non profit was having to play catch-up, in the 2nd, and 3rd quarter, they made up pay.”
I had a NFP church that “couldn’t afford” to pay at times, so they issued paychecks and put them in a drawer until they knew they could afford to have them processed. That means the liability payments were already late for the due date, which is based on the paycheck date.
“if we do have to pay late, that we wont be messing up our tax payments”
Next, paying employees late has no meaning. There really ARE 4 checks in a cycle, if they issued 4. Look at the paycheck Dates. They can include prior month and current month on the same paycheck. That is up to them. What matters is the paydate on the checks.
“Do we just leave the taxes as a credit, and correct it at the end of the year? or adjust quickbooks, or record the pay for different pay periods?”
Lastly, you pay Liabilities based on the Paycheck Date. Period. There should be no Paid More or Paid Less or Paid Late. The IRS doesn’t care about what is happening in the office. They just look at Paycheck Date.
Asking for a refund or having overpayments applied to the next period is a decision they need to make. But they also need to look at their cycle and what they are paying and when, based on their IRS notification for reporting and paying due dates. Then, they need to get on track and not overlap reporting periods.
Payroll process uses Dates in different ways:
Work Week = however your State requires you to determine things like Overtime and work Schedules.
Pay Period Date, such as October, if you are Monthly.
Pay Date = the date on the paycheck; this means the employees are given access to funds = now taxes are owed = liability PERIOD.
Liabilities are paid for that PERIOD, and the liability has its due date, so paying for Any PERIOD and paying it late or overlapping PERIODS leads to confusion, penalties, interest, refunds, credits, etc.
Here are specific examples:
We pay you for March (pay period) in April. The Liability PERIOD is April. This is a 2nd quarter for liability purposes. The PERIOD on the Liability checks should not include Jan-March. Or;
We will pay you for March and April (pay periods), but we can’t afford it until May. The paycheck is dated 5/5. The PERIOD for Liabilities is MAY 5 (second quarter) because these are May 5 paycheck dates. There is only 1st quarter liability from Jan and Feb dated paychecks. The Liability check for quarterly liabilities, from QB, should not include March in the PERIOD.
And we never issue paychecks we don’t intend to distribute. In my QB and Payroll class, I describe this as a Ticking Timebomb. You start the bomb ticking when you issue paychecks.
Resolution for Issue 'Why do i keep receiving irs tax refunds for quarters?' available: Yes (Solved).
Source: Intuit Community forum.
Why do i keep receiving irs tax refunds for quarters?: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.Support for IRS
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