How to Adjust Payroll Liabilities in QuickBooks Explained Scott M Aber, CPA PC

Up until yesterday, I was able to also create an unscheduled custom liability payment to the payroll company. When I try to that now, there are no items to choose from under the list “payroll items”  on the “Pay Liabilities” page. I must be able to select the 2 payroll items included for the tax deposit liability in order to create the liability check. (One is the Federal 941 and the second is our state income tax).

  • It is much easier to check which amounts should be adjusted by using their screen sharing tool.
  • Once you pay the amount in full (whatever the amount is indicated for that particular liability), then the item won’t show, since there is a zero liability now that you’ve paid it.
  • Let us know if you have other concerns about payroll in QuickBooks.
  • For small business owners who don’t want to spend all day doing the accounting, payroll’s a pain.
  • If you’re not sure where to find it, check out the setup guide from QuickBooks for a guide to the dashboard.

How can I get both of those items to appear again? I need to be able to write manual checks to pay payroll tax liabilities. We do not use the payroll module in QBs and I’ve never used the pay payroll liabilities tool. This article clarifies every step on how to adjust payroll liabilities in QuickBooks and getting it as a credit to payroll tax liabilities. I’ve never used the pay payroll liabilities feature in QBs. We have an external system for payroll, so we don’t use the payroll feature in QBs.

How To Do Payroll In QuickBooks (2023 Guide)

In the meantime, though, here’s the lowdown on the details you’ll need to add. Before you start, familiarize yourself with the QuickBooks payroll software, if you haven’t already. You’ll also need a QuickBooks subscription with a payroll add-on, or a stand-alone QuickBooks payroll subscription. QuickBooks Payroll comes with some major benefits, including same- or next-day deposits, benefits management and automated tax calculations and withholdings. Thus said, you’ll have to review all these items so you’ll be able to locate and find the error of your payroll tax calculation.

Once done, you can run the Check Detail report to view the details of every check that you’ve created in QuickBooks. It’s time to get direct personal help from a local provider who can review methods and accounting, and get adjusted balance definition you on track. I recommend getting in touch with your accountant for guidance about recording liabilities and writing checks in the best way for your business. Let me know if you have additional questions about payroll.

However, there’s still one line that is showing up as unpaid. The ‘Actions’ section doesn’t provide any options to mark it ‘paid’. When you create a custom payment, it shouldn’t be seen in the Liability window. You might want to check the pay period of this payment to see if you’ve selected the correct one. That’s the reason why you’re still seeing the tax amount in that window.

Once you enter your payroll, the liabilities will repopulate with whatever amounts are due to date. You have clicked a link to a site outside of the QuickBooks or ProFile Communities. By clicking “Continue”, you will leave the community and be taken to that site instead. The steps below will guide you on how to find the “I don’t need a schedule for this” option. Here’s what to do if the liabilities were overpaid in one period and underpaid in a previous period. Please know that you’re always welcome to swing by anytime if you have other questions.

You also need to make sure QuickBooks has all of the information it needs to make your payroll run smoothly. This is essentially employee hours (entered by either you or them) and bank account information (for both employer and employees). If this is your first time ever doing payroll and you need a bit more help with those steps, check out our article on how to do payroll for a general overview. And this is not going to be resolved via a text-based forum. The entry of that Banking as Expense means the P&L is wrong for these timeframes, as well.

I now know that the fix is going to cost me some time, but cannot determine the path to fix it… Ever wonder how IRS examiners know about different industries so they can audit various businesses? They generally do research about specific industries and issues on tax returns by using IRS Audit… Do you use an automobile in your trade or business?

When I set up my Quickbooks at the beginning of 2018, I inadvertently created a new Expense category called Payroll Taxes. I did not use Payroll Liabilities and was not even aware that it was there. Now I have a huge payroll liabilities amount that I need to correct, and am not finding much help on how to do this… To schedule and pay your federal and state tax liability in QuickBooks, you must first set up your payment schedule. To do this, go to Employees then Payroll Taxes and Liabilities then Pay Scheduled Liabilities. Did you notice before today, if there was a balance n each of those liability items?

Where can I find a tutorial for payroll in QuickBooks?

Please learn from what I am going to explain, as this is Important to all QB desktop users that also use the program to run payroll. After updating the liability account, there will be a pop-up message that will allow you to update your transactions according to the date you specify. There’s a new process of contacting our Customer support. This will ensure that you’ll be routed directly to the correct product specialist while working on your account.

Steps to get Overpaid Liability as a Payroll Tax Liability Credit

Because this is a Helper function that keeps you on track. Chauncey grew up on a farm in rural northern California. At 18 he ran away and saw the world with a backpack and a credit card, discovering that the true value of any point or mile is the experience it facilitates. He remains most at home on a tractor, but has learned that opportunity is where he finds it and discomfort is more interesting than complacency.


In case you’ve already paid them, you have to make sure you record them in QuickBooks. To do that, you can use the enter prior payroll feature. If you have QuickBooks payroll for Desktop, tracking and paying payroll liabilities can be a quick way to be reminded when your payroll deposits are due and how much is owed. Since you’re still unable to mark a tax liability as paid even after following the steps shared by my colleague above, I’d recommend contacting our Payroll Care Team.

It’s straightforward, especially after the first time you input your payroll information, and the software is intuitive to use. Especially if your accounting department already uses QuickBooks for other purposes, it’s a seamless way to automate otherwise complex processes. We use a payroll company to create our payroll checks for our non-profit. But, I copy and enter their information into our Quickbooks file on the 2018 desktop Quickbooks for non-profits. Your payroll tax calculations depend on your payroll data and all the payroll transactions you’ve entered. I’m here to share a few insights and help you from there.

We recommend checking them out if you have international employees, require a lot of built-in tools or are looking for a professional employer organization. There are also better options if you’re in need of a free trial. We can use the Write Checks function since you don’t have the QuickBooks Payroll function activated. Just make sure to use the correct expense accounts when creating manual checks. This way, we can make sure that these transactions are reported under the correct accounts when running your financial report. I’ve never used the Pay Liability tool and always use manual write check to pay the liabilities.

Thanks for your response @jamespaul ‘Pay Taxes’ or ‘View All’ link is not appearing on my screen. I’ve tried both business view and accountant view. Learn how to get started with QuickBooks Desktop Payroll and start paying your employees with these short step-by-step videos. As always, you can contact our Payroll Care support if you need assistance with the adjustment. It is much easier to check which amounts should be adjusted by using their screen sharing tool.

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