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phburke
January 14, 2019
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Adjust a payroll item liability account

  • January 14, 2019
  • 2 replies
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We had a payroll item not set up completely (didn't have the scheduled date set) so it didn't show up on the "Pay Liabilities" page - it was set up this way for several months.  The bill (Aflac) was being paid out of a "Insurance Expense" account.  Now the Payroll Liabilities a bunch of money in it and when the schedule date was set, there are a bunch of items that are past due.

 

What we would like to do is to take all of the past due items and move the amount from the "Payroll Liability" to the "Insurance Expense".  How should we do this?

 

This is for Quickbooks 2017 Premier

Best answer by ShiellaGraceA

Hi phburke,

 

You can record the past due payments as prior payments in QuickBooks. Then, choose Do not affect accounts to avoid duplicate posting on your accounts.

Please check out this article for the detailed steps: Enter historical tax payments in QuickBooks Desktop Payroll.

 

QuickBooks used the default Payroll Liability and Payroll Expense accounts. You can change the correct expense account by going to Lists, and the Payroll Item List. Just edit the item to correct it. 

 

I'll be here if you have any payroll questions.

2 replies

S
ShiellaGraceAAnswer
January 15, 2019

Hi phburke,

 

You can record the past due payments as prior payments in QuickBooks. Then, choose Do not affect accounts to avoid duplicate posting on your accounts.

Please check out this article for the detailed steps: Enter historical tax payments in QuickBooks Desktop Payroll.

 

QuickBooks used the default Payroll Liability and Payroll Expense accounts. You can change the correct expense account by going to Lists, and the Payroll Item List. Just edit the item to correct it. 

 

I'll be here if you have any payroll questions.

    P
    phburkeAuthor
    January 15, 2019

    Perfect.  Thanks for your input.

    K
    KhimG
    January 15, 2019

    Thanks for getting back to us, @phburke.

     

    I'm glad the solution provided by my colleague was able to address and help you with your concern.


    Please be sure to let us know if you need anything else. The Community is here to help. Wishing you the best!

    qbteachmt
    qbteachmt
    January 16, 2019

    @KhimG

    @ShiellaGraceA

     

    Please Learn from the input here. You cannot use Adjust, or Prior Payments and Not affect the accounts. Let's review what actually happened:

    "The bill (Aflac) was being paid out of a "Insurance Expense" account."

     

    If you also have the Payroll Item as employee Deduction, this was never employer expense.

     

    If you also have the Payroll Item that is Employer only, you just Doubled Expense.

     

    So, Yes, the Accounting is Wrong.

     

    "Now the Payroll Liabilities a bunch of money in it and when the schedule date was set, there are a bunch of items that are past due"

     

    There is a function for Create Custom Liability Checks. You can Replacve your wrong checks with Pay Liabilities checks, or You need to Pay Them Properly, but end with a $0 payment, like this:

     

    Use the Pay Liabilities function or the Create Custom, for each "Period" = the Paycheck date range, such as you might pay Monthly. This is why using the Pay Liabilities, now that you see them Scheduled, works best. It will handle the Period for you.

     

    Select what still shows is owed for this cycle; this should match what you already paid.

     

    Click on the Expenses tab of this Pay Liability check; enter your Wrong insurance Expense account here and the Same amount is here as Negative.

     

    Hit the Recalc Button. This is a $0 Check; this Offsets the Wrong Expense entry for that same date you already made that prior expense entry error. This Clears the Liability by reference to the Payroll Item. And this check ends at $0. You can even make a Bank account and name it Payroll Clearing. All of these correction checks should end at $0.

     

    And for each Error date, in that Insurance Expense Detail report, you should see, for instance:

    Wrong Transaction and Date, amount paid Positive

    Pay Liability Check, same Date and amount, but amount is Negative here.

     

     

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