Quickbooks training Orange County, CA
Quickbooks training? Call LSL CPAs – (714) 569-1000

Incorrectly entered payroll tax liability payments are suspected when you try to pay payroll liabilities using the correct workflow, but the “Pay Liabilities” window shows prior period payments as overdue (in red). Also the quarterly payroll forms will show an incorrect balance due, despite the fact that the balance for this account in the Balance Sheet is correct.

Look at all the transactions in the Payroll Liabilities account to see what type of transactions were used in the past to pay payroll liabilities. In all likelihood, you will see at least one check or bill transaction.

Also, look at the payroll tax agency in the “Vendor Center” to see if the liability was paid with “Write Checks” by doing the following:

  1. Open the “Vendor Center”.
  2. Find the payroll tax agency and click on that vendor’s name.
  3. Review all transactions related to this vendor in the right-hand pane and ensure that all transaction types are displayed.
  4. All payroll tax liability payments should be listed as a “Liability Check”. If there is a check or bill, double click to view the transaction.
  5. Verify that this transaction was created to pay payroll tax liabilities.

If you find that a payroll tax liability was paid using the “Write Checks” screen (or a Bill and Bill Payment), after you determine the account when the original entries were posted, you can fix the problem by following these steps:

  1. Back up the company file.
  2. Find the incorrectly recorded payroll liability payment transactions. Note the amount paid and the expense account used.
  3. In the “Payroll Center”, select “Pay Taxes Liabilities and Liabilities” and select “Pay Liabilities” tab then select the overdue liability that was paid via “Write Checks” or “Bill Payment”.
  4. Click the “View/Pay” button, which brings up the liability check.
  5. Select the “Expenses” tab.
  6. In the “Account” column, click the drop-down arrow and select the account used in the incorrect transaction. In the “Amount” field, enter a negative amount equal to the amount of the payroll tax liability check.
  7. If the payroll tax liability was only partially paid via the incorrect workflow, enter the actual amount paid via that workflow as a negative instead of the amount of the liability.
  8. Click “Recalculate” to change the check amount to zero.
  9. Click “Save” then “Close”.

Make sure to call your LSL QuickBooks Advisor at 714.569.1000 or email directly at [email protected] to get the help you need.

Written by: Laurel Morrison, Paraprofessional

Want more content like this?

null

Sign up to receive our monthly newsletter straight to your inbox.