In this content, we will talk about the easy steps to zero out payroll liabilities in your accounting software, popularly known as QuickBooks.
Furthermore, the payroll liabilities balance report holds the information regarding the payroll items allocated to a liability account, deductions, and many company contributions.
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In a simple sense, liability is the particular amount that we are supposed to pay someone, however, we haven’t paid them yet. It is often required to zero out payroll liabilities in QuickBooks when the particular payroll liability report displays wrong accounts. If you wish to edit the wrong payroll liability report, read on.
In payroll liabilities, the amount that we are supposed to give to our employees comprises the payroll taxes. Often it is seen that business owners around the world hold the payroll taxes from their employees.
Hence, today we will talk about the process of how to zero out the payroll liabilities of a business owner via QuickBooks without fail and will also highlight some of the most common questions asked in this matter.
What are Payroll Liabilities?
Similar to other types of liabilities, Payroll Liabilities are the amount that is not paid by you; however, you owe it to your employees. This comprise of the amount of payroll tax that is held back from the employees. The amount which is tracked on the paychecks by utilizing the payroll item also added in payroll liabilities.
Here are the examples of Payroll Liabilities:
- 401(k) contributions
- Union dues
- Health insurance contributions
- Garnishments that are used for child support
Why do you Require Zeroing out the Payroll Liabilities in QuickBooks?
There is a reason why all the payroll liabilities in connection to the particular amount are required to be zeroed out. The reason is all the liabilities should be paid.
In case the net compensation that is given to the employee matches with the net compensation that are estimated in the wages payable and payroll, it should be zero out.
Errors that occur while Reconciling Payroll Liabilities in QuickBooks
Whenever you attempt to reconcile payroll liabilities in the QuickBooks application, you can experience some technical issues because of some reasons.
Here are the reasons mentioned below:
- When the employee has received more than the original payroll amount.
- An error message like “The file cannot be installed” or “It seems that are you going to pay your Payroll abilities”.
- Your particular bank account may seem perfect, but in reality, it is not.
- If the version of QuickBooks application used is out of date.
How to Zero out the Payroll Liabilities in QuickBooks?
Here are the steps to zero out the payroll liabilities in QuickBooks:
Step 1: Open your QuickBooks account and navigate to the Payroll Center. Then add a checkmark against the payroll liability for which the particular payment was made via cash or check.
Step 2: Now select the View tab or the Pay tab. It will open a liability check-up.
Step 3: Then select the expense and navigate to the account dropdown menu and then choose the expense account which you selected during the time when the payment was recorded.
Step 4: No in the particular amount section, add the negative value sum that is equivalent to the liability value.
Step 5: Select the recalculate that will turn the payroll liabilities to zero amounts.
Step 6: Select Save and close to complete.
We hope that all the information provided above has helped you to zero out the payroll liabilities in QuickBooks. However, some of you may still have some queries and need satisfactory answers for those, related to zeroing payroll liabilities in QuickBooks.
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How can one clear out the Payroll liability sum in the particular Payroll Centre?
It is possible to clear out the Payroll liability in the payroll center. All you need to do is:
Step 1: Select on Employees.
Step 2: Then select Employee and Payroll.
Step 3: Choose payroll liability balance from the particular dropdown menu.
Step 4: Add a refund check. Or you can also add a manual bank deposit whatever the case is.
How to Reconcile the Payroll Liabilities in QuickBooks?
Reconciling the payroll liabilities in QuickBooks often becomes an important need for business owners. To do so, you need to follow certain steps and guidelines.
Here are the steps:
Step 1: First you are required to print out the particular payroll register.
Step 2: Then match the particular employee time cards in order to pay the register.
Step 3: Authenticate the salaries, pay rates, and deductions on paychecks.
Step 4: Finally, post your entries in the general ledger that should match with your particular payroll register.
How to get rid of the Paid Liabilities in QuickBooks?
In order to get rid of the paid liabilities, in your QuickBooks software navigate to the pay liabilities tab then choose the transactions from the particular payment history screen.
Now choose delete from the screen top and then select OK delete the particular payment.
Why do the Payroll Liabilities is displaying a Negative amount?
When the payroll liabilities display a negative amount, it is not a good thing. The negative amount is often displayed because of two primary reasons. The reasons are tax overpayment or the wrong tax rate. These two are the most reasons for a negative amount in payroll liabilities.