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This help topic explains how to adjust payroll liability amounts using the Adjust Payroll Liability form in Total Office Manager.


This form allows you to enter an adjustment for any payroll item. For example, after you prepare a payroll tax form, you may discover that your balance for a liability payroll item needs to be reduced or increased. You make an adjustment due to rounding differences in your payroll feature or maybe because of what your accountant told you the numbers should be.

Liability balance adjustments change the amounts that Total Office Manager shows in your various payroll reports.

Form Access

  • From the main menu, click Employees | Adjust Payroll Liabilities


  1. Open the Employee Liability Adjustment form according to the instructions above.

  2. Click the Liability Adjustment button and select New Liability Adjustment Entry.

  3. In the Date field, enter the date for which you are making the adjustment. Total Office Manager enters today’s date automatically.

  4. In the Effective Date field, enter the date that you want this adjustment to affect your liability balance. Total Office Manager uses this date to calculate amounts on your Forms 940 and 941 and on the payroll liabilities report.

  5. Choose whether to associate this liability adjustment with the company or a specific employee. For example, if you over accrued Federal Unemployment Tax (FUTA) for an employee, you would click the Employee option and choose that employee’s name from the drop-down list .

  6. In the Account field, choose the payroll item you wish to adjust.

  7. In the Increase or Decrease field, enter the amount of the adjustment.

  8. To increase the amount owed, enter a number in the Increase field. To decrease the amount owed, enter a number in the Decrease field.

  9. In the Memo field, enter a note about the adjustment. This is optional but highly recommended.

  10. If you selected to adjust amounts from an employee paycheck (as opposed to the entire company), you must select an employee liability account (bottom of form).

Field Definitions

Date –

The date the adjustment was entered. This is not the same thing as the Effective Date explained below.

Entry # –

Total Office Manager assigns a number to help identify the adjustment.

Effective Date –

The date Total Office Manager applies the changes you enter. By default, Total Office Manager enters the current date.

Adjustment is for –

This refers to what this adjustment will apply to. You have two choices; company and employee.

Company –

The adjustment is for the entire company – the company’s share. This is the payroll tax liability of the company, and not the individual employee.

Employee –

Select this option if your adjustment is for an individual employee (the employee’s share) and not to adjust the company’s share.

Account –

Select the payroll item that will be affected.

Increase –

Enter a number in this field if you wish to increase the amount.

Decrease –

Enter a number in this field if you wish to decrease the amount.

Memo –

Enter a memo to explain why this change was made or anything else you wish. This memo will appear on certain other forms and reports. We highly recommend that you enter something here.

Expense, Asset, or Liability Account for employee –

If you are adjusting an employee’s paycheck (see “Adjustment is for” above), select a liability account to adjust.

OK –

Closes form and saves your changes.

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