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QuickBooks Payroll Liabilities Payment Got Lost

How to Handle a Lost Payment for QuickBooks Payroll Liabilities

A reader wrote, "I made a 941 payment through EFTPS (using an electronic payment). The transaction didn't clear and then we received a notice that the payment was never received. I went to EFTPS and made the payment again. How do I void the original payment, which was made more than a month ago, and enter the new payment? Everything I try messes up my payroll liability totals in QuickBooks."

You don't have to do anything in QuickBooks; the new payment will clear the bank (hopefully). If this had been a check that got lost in the mail and you had to re-issue a check, the easiest way to handle that would be to stop payment on the first check, and then change the check number of the first check to the check number you used for the replacement check. Trying to void and re-enter payroll liabilities is a maze that's difficult to exit.

If your late payment included penalties and/or interest, enter a check in QuickBooks (with no number) to cover those amounts, and post them to an expense account that tracks them (such as Other Expenses). When you reconcile your bank account, the second payment (the one that cleared) will be larger than the check entered in your register; to clear the payment select both the payment check and the penalties/interest check – the total will equal the new check.

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