The Payroll Liability Balance report provides information on most deductions, most corporate contributions, and payroll items assigned to a liability account. When running the report, you can run into mistakes or inaccurate information. Following are the some examples of scenarios and solutions are:

Scenario 1: The payroll item was entered into your Chart of Accounts incorrectly.
Scenario 2: Following the payment of the liability, a liability check or paycheck was canceled.
Scenario 3: In scenario three, a write check or bill payment was utilized in lieu of a liability check to document the payment.

Fix Discrepancy on Payroll Liability Balances Report in QuickBooks Desktop Payroll

Scenario 1: The Payroll item was Entered into Your Chart of Accounts incorrectly.

Your Chart of Accounts should have a Liability Account for Payroll Liabilities.
Select Reports, followed by Employees and Payroll. Choose the Payroll Items Listing.
Examine the payroll item to make sure the right account is linked to it. If not, double-click the account name to make changes or establish the account. Choose Next.
Choose Payroll Liabilities from the Liability Account dropdown▼ menu.
Keep clicking Next until you get to Finish.
Click “Finish.“
Click OK after selecting Update all existing transactions to use this new account in the Update transactions with new account window.

Scenario 2: Following the Payment of the Liability, a Liability Check or Paycheck was Canceled.

QuickBooks Desktop Payroll Basics, Standard, and Enhanced

Paycheck Cancellation: Your Payroll Liability report will display negative amounts if you inadvertently void a paycheck after paying the obligations. To make your Payroll Liability Balances right, recreate the voided paycheck.
Liability Check Nullified: In the event of a voided liability check, the Payroll Liability Balances will display a positive amount. To fix it, make another copy of the voided liability check.

QuickBooks Desktop Payroll Assisted

Paycheck Cancellation

If it falls within the same quarter, recreate the cancelled paycheck.
A invalidated paycheck from a previous quarter or year will need to be amended. Get assistance by contacting us.

There is no Liability Check or it is Void.

Navigate to Vendors and then Vendor Central. Choose Quick Report by right-clicking on QuickBooks Desktop Payroll Service.
Check the Quick Report to make sure all liability checks are documented.
Make an appointment with us to duplicate the lost or canceled liability check.

Scenario 3: Write a Check or Bill Payment was utilized in lieu of a liability check to document the payment.

Use a liability check rather than a regular check to settle your obligations. Only after a liability check is generated does QuickBooks acknowledge that a liability has been paid.

First of all Go to Banking and then Use Register.
Choose the bank account using the drop-down▼ menu, then click OK.
Locate the normal check that was first used to document the responsibility payment, and make a note of the payment’s contents.
Click Delete to make the check disappear.
Click on Save & Close.
Pay Scheduled Liabilities or Create Custom Liability Payments should be used to accurately record the liability check.

Point to be remembered: To correct the wrong balance, you might occasionally need to make adjustments to your obligations or return your deposit. Consult an accountant or bookkeeper prior to taking this action.

Conclusion

We hope that the above data will help you in understanding that how can you easily Fix a discrepancy on Payroll Liability Balances report in QuickBooks Desktop Payroll. In case still you face any issue then you can contact us, we had a team of experts who will help you in resolving the issue which you are facing while fixing a discrepancy on Payroll Liability Balances report in QuickBooks Desktop Payroll.

Frequently Asked Questions

Which QuickBooks report displays the total Payroll Liabilities balance?

The Payroll Liability Balance report provides information on most deductions, most corporate contributions, and payroll items assigned to a liability account.

Why do my Payroll Obligations not Appear in QuickBooks?

There is no activity on the liability account. During the payment process, an incorrect date range was used. You have not updated your payroll tax table or QuickBooks account to the most recent version. It’s possible that you rearranged your QuickBooks list and damaged the company file.

I have Negative Payroll Liabilities; Why is that?

Some small business owners record the costs under the heading “payroll liabilities.” Your payroll was probably set up incorrectly if this account has a negative balance. If this isn’t resolved, you’ll wind up paying more in taxes because your team’s compensation isn’t being accurately calculated.

Are Salary Obligations included in the Balance Sheet?

Payroll liabilities are reported as current liabilities under wages payable and as payable under taxes payable on a balance sheet for your company.

What is the Payroll Adjusting Entry?

The adjustment entry increases expenses on the income statement by debiting Wages Expense for the payroll amount accrued during that period. In addition, it credits Accrued Payroll Liability with the same amount, resulting in a liability for the accrued pay owing to employees on the balance sheet.