Last Updated on August 13, 2025
Intuit offers a payroll service for QuickBooks users, which makes important business processes like sending paychecks, calculating taxes, HR support, and many more much easier. However, due to human error, payroll mistakes in QuickBooks can occur. This can be detrimental to your business financially and can also result in legal consequences; hence why it is important to fix these mistakes on time.
In this blog, we’ll learn how to fix the most common payroll mistakes in QuickBooks Online and Desktop. So let’s dive right into the next section.
Are you struggling with incorrect information or mistakes in QuickBooks? Contact our QB experts today at +1(855)-738-0359, who’ll make this process smooth sailing.
Understanding the Significance of Accurate Payroll for Small Businesses
It is absolutely critical for the payroll to be accurate to ensure that all your business processes are smooth sailing. Even the tiniest of payroll mistakes in QuickBooks can cause a great commotion and can force you to incur financial losses. It can also bring the spirit down of your whole workforce if they aren’t getting paid on time or if there are discrepancies in the paychecks. This can also result in legal consequences if there are any tax discrepancies. So it’s advisable to double-check your payroll to eliminate any mistakes beforehand. Now, let’s discuss some of the most general mistakes small businesses make while running their payroll operations.
Common QuickBooks Payroll Errors and Their Causes
QuickBooks Payroll users may face a variety of errors that can disrupt payroll processing. Common subscription issues include Error PS038, PS034, and PS032, often caused by expired services, billing problems, or corrupt company files. Setup errors like missing payroll items or incorrect configurations can occur during initial setup. Update problems such as Error PS077 or 15243 arise when tax table updates fail due to disabled services or outdated components.
Calculation errors—including incorrect tax amounts or missing Social Security/Medicare deductions—are often due to setup mistakes or outdated tax tables. Connectivity issues like “View My Paycheck Not Working” or server errors stem from internet or configuration problems. Other recurring issues include payroll turning off automatically, restricted file access (Error 30159, 2107, 9000), and failed direct deposits.
The Most Common Payroll Mistakes in QuickBooks that People Make
Recurring payroll mistakes in your business processes can have a lasting impact on the mindset of your employees. Therefore, it is essential that you keep your payroll accurate and free of mistakes in order to maintain their trust and confidence. Compliance with tax laws is also another reason to do so. Now, let’s take a look at the most standard mistakes people make while running payroll:
- Poorly Kept Records: It is important to have accurate information of your employees, such as overtime, sick leaves, correct banking information, and hours worked. Failing to do so can result in discrepancies, resulting in a bad reputation among your employees.
- Late Payments: If you miss your paycheck deadlines regularly, it can be a huge demotivating factor for your employees, which can ultimately result in a poor and lethargic work environment.
- Incorrect Calculation of the Payroll: This can have serious financial implications for both your employees and your company.
- Wrong Tax Calculations: If you have any of your employees in the wrong tax category, they can end up paying too much or too little tax, which can impact both your business and the employees.
These were some generic mistakes small business owners usually make while running their payroll services. Now, let’s discuss some cases of payroll mistakes along with their solutions.
How to Fix Payroll Mistakes in QuickBooks Online & Desktop? Casewise Solutions
Let’s take a look at some cases of payroll mistakes in QuickBooks with step-by-step guided solutions.
Case 1. You Have Entered the Wrong Employee Account or Routing Number
You might have set up the wrong employee account or routing number in QuickBooks Payroll Direct Deposit. This can be fixed in both the Desktop and the Online versions. Let’s take a look at QBDT first.
a. Change Employee Banking Info in QBDT
You can change your employee’s banking info in QB Desktop by following the steps given below:
- Open QuickBooks Desktop
- Tap on the Employees menu
- Select Employee Center to open the employee list
- Choose the employee’s name whose info you want to correct
- Now, click on the Payroll Info tab
- Press the Direct Deposit button
- The Direct Deposit window would open
- Then, click on Use Direct Deposit for [employee’s name]
- Now, choose from these two options:
- Deposit in one account
- Deposit in two accounts
- Now enter the following info:
- Bank Name
- Routing Number
- Account Number
- Account Type
- Click OK to save
- When asked, enter your direct deposit PIN
This would change your employee’s banking information in QuickBooks Desktop Direct Deposit. Now, let’s take a look at the steps for QB Online.
b. Change Employee Banking Info in QBO
You change your employee’s bank account or routing number in QuickBooks Online with the following steps:
- Choose the Employee option
- Go to Payment method
- Now, select Edit
- Enter the updated/correct banking information
- Click on Save to finish
This would fix the payroll mistake of having an incorrect employee account or routing number in QuickBooks. Let’s proceed to the next case.
Case 2. You Might Have Overpaid an Employee
While sending out paychecks, you could’ve overpaid an employee. It occurs due to an incorrect amount in their gross pay. This mistake should be fixed on a priority basis as soon as possible. Let’s discuss how to resolve it. To reduce your employee’s wage in QB, you can follow the steps given below:
- Firstly, create a payroll item for reducing wages
- Open QBDT
- Go to the Lists menu
- Select Payroll Item List
- Now, tap the Payroll Item button
- Click on New
- Now, choose Custom Setup
- Hit Next
- Click on Deduction and press Next
- Type in an easily identifiable name of the payroll item
- Select Next
- Go to the Liability Account field
- Enter the same Expense Account that was used when the employee was overpaid
- Click on Next
- Now, choose a tax tracking type of Compensation
- Press Next twice
- Now, choose Calculate this item based on Quantity if the employee was paid hourly
- Choose Neither if you paid the employee with a salary item
- Click on Next and hit Finish
- Finally, add the new payroll item to your next paycheck
Note: The deduction item must be added to a paycheck with equal or more earnings than the amount that will be deducted, as QuickBooks can’t create a paycheck with a negative net pay.
Case 3. Correction in Direct Deposit
Payroll mistakes in QuickBooks also encompass direct deposit errors. You can void a direct deposit paycheck error with the steps given below:
- Open QuickBooks Desktop
- Go to the Employees menu
- Click on Edit/Void Paychecks
- Change the Show paycheck dates from/through to the paycheck date you want to void
- Select the paycheck
- Press Void
- In the pop-up menu, enter Yes
- Click on Void
- Agree to the terms and conditions of voiding the paycheck
- Close the Edit/Void Paycheck window
- Now, open the Employees menu again
- Select Send payroll Data
- Finally, finish it off by pressing Send
This would eliminate any mistakes in your QuickBooks Payroll Direct Deposit.
Case 4. Edit QuickBooks Payroll Mistake in Timesheet
If you’ve mistakenly saved your timesheet in QuickBooks Online for the incorrect week, you can fix that by following the steps given below:
- Click on the Plus (+) icon
- Now, select the Weekly Timesheet
- Ensure you enter the correct employee
- Click on the Weekly Period dropdown menu
- Then, select the incorrect week
- Press the Trash (clear) icon to remove the hours from the wrong week
- Hit Save and close
- Repeat the steps for every employee
This would allow you to fix the QuickBooks Payroll mistake in your timesheet.
Payroll Mistakes in QuickBooks – A Quick View
A concise summary of this blog on the topic of fixing mistakes in QuickBooks Payroll is presented below in a tabulated format:
| Description | Due to human errors, mistakes can occur in your important QuickBooks Payroll processes. This can hamper your workflow and can cause an obstruction to your business operations. |
| Cases you might be dealing with | Entering the wrong account or routing number of an employee, having overpaid an employee, direct deposit mistakes, or Payroll Timesheet mistakes. |
| Resolutions | Check your employee information and correct it, adjust the wage and tax deduction, and verify your banking details and direct deposit setup. |
Conclusion
In this blog, we talked about the different payroll mistakes in QuickBooks that you can make. Moreover, we provided you with step-by-step guides specific to the scenario you might be dealing with. If you want assistance in correcting any payroll mistakes in your QuickBooks software, don’t hesitate to contact our QB professionals at +1(855)-738-0359.
Frequently Asked Questions (FAQs)
To correct a payroll paycheck in QuickBooks Online, first, go to Payroll and click on Employees. Then, choose Run Payroll. Proceed by changing the Pay Date and Pay period. Now, select the employee and add the corrected amount. Make sure the submission is marked as Paper Check and hit Submit Payroll. Now, navigate to Taxes and choose Payroll Tax followed by Payments. Review the liabilities in and hit Pay.
To edit a paycheck in payroll after submitting it first, ensure that it hasn’t been submitted through direct deposit, then select the Paycheque list and filter the dates you want to edit. Choose the paycheque and click on the dropdown menu under the Action column. Press Edit and make the necessary changes. Finally, hit Save.
To adjust the payroll liabilities in QuickBooks, follow the steps given below:
1. Run the QBDT app
2. Click on the Employees menu
3. Select Payroll Taxes and Liabilities
4. Now, press Adjust Payroll Liabilities
5. Select the last paycheck date of the affected month or quarter in these two fields:
a. Date
b. Effective Date
6. Under the Adjustment is for section, select Company
7. Go to the Item Name column
8. Choose the payroll item you wish to adjust
9. Now, in the Pay Liabilities tab, enter the Amount adjustment as negative
10. Click on OK
11. Finally, select Accounts Affected and press OK
Kate is a certified public accountant (CPA) with expertise in various accounting software. She is technically inclined and finds passion in helping businesses and self-employed people carry out bookkeeping, payroll, and taxation without worrying about errors. Every once in a while, Kate loves to travel to far-off places and relax in the lap of nature.