QuickBooks payroll liabilities are countermeasures that can be taken when a business owner makes a mistake. Some of the most common mistakes include the following:
- A business owner must adjust wages that are year to date, a deduction or an additional payroll item for employees who will no longer receive paychecks.
- A business owner must increase or decrease the company contribution amount of a Health Savings Act, 401(k) company match or an IRA company match
- A business establishes a Health Insurance Company Contribution with an incorrect type of tax tracking. A business owner needs to move the amount for the year to date from the incorrect payroll item to a correct one.
While business owners may need to change the year to date figures, others may need to change information on a quarterly return and should use the quarter to date adjustment. Business owners then run a Payroll Checkup if they are a Basic, Standard or Enhanced customer.
Creating Payroll Liabilities
Business owners can create QuickBooks payroll liabilities adjustments by following a few steps. These steps change the year to date information for an employee. First, the business owner must make a Payroll Summary Report by going to the area marked “Adjust Payroll Liabilities.” This report will help the business owner find the amount that needs to be adjusted on the payroll item. The business owner selects the appropriate “Effective Date.”
Next, the business owner clicks the column entitled “Payroll Item” and selects the correct item in the Taxes and Liabilities selection. He or she then inserts the appropriate amount for the adjustment. The business owner then clicks on “Accounts Affected.” He or she should then choose whether the adjustment should affect other accounts or not.
If the business owner needs to make more adjustments, he or she then clicks on “Next Adjustment” and follows the same steps for each employee. When the business owner is finished, he or she clicks “OK” and the entries will be saved. The business owner should then run a new Payroll Summary Report to ensure that the new totals are correct. Companies that have Assisted Payroll should submit and send a zero payroll so that the changes are transmitted to payroll service.
If you use QuickBooks and need assistance with QuickBooks payroll liabilities or other features that are part of the QuickBooks software, contact our QuickBooks ProAdvisor in your area.