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TraceyEC
February 11, 2022
Question

Bills that include company expenses and employee liabilities

  • February 11, 2022
  • 1 reply
  • 0 views

We have several bills that are paid by the company that employees also contribute to.  We are a towing and repair facility, so for example, The company owner has an account with a uniform company.  The owner's uniforms, other cleaning supplies, and uniform insurance (for all) is paid by the company.  Each employee is responsible for the cost of their uniforms weekly.  This is set up as a payroll deduction with a liability account.  We have the same scenario for cell phones and tool accounts where both company funds and employee funds are combined to pay the bill.  

 

When the bill is entered, I can break it down by which account is responsible for what and it correctly reflects on the COA balances for the employee liability account, however, it still remains as an open balance in the "pay liabilities" section.  It does warn about paying liabilities in the "pay liabilities" screen so I am assuming that is why it remains as an open balance there.  So when I go to "pay liabilities" for that item I can't add the company portion of the bill.  One check is written to each respective vendor by the company to include payments from the company and the employees.

 

I'm not sure how to proceed correctly without messing up theses account records, but we don't want to be claiming the entirety of an expense when employees have paid a portion of it.  I don't want accounts to appear overpaid either by recording the actual check and then the liability payment.  I'm hoping that I'm just overthinking it and the answer has been right in front of me the whole time, but I am driving myself nuts trying to figure it out.

 

Thank you for any assistance.

1 reply

M
MadelynC
February 11, 2022

I’m here to impart some information to get rid of your open balance, Tracey.

 

You can zero out your payroll liabilities to settle the balance in the Pay Liabilities section. I’m glad to show you the steps.

 

  1. Go to the Employees menu, then pick Payroll Center.
  2. Put a checkmark against the payroll liability.
  3. Click the View/Pay button.
  4. Select the Expenses tab, then choose the expense account you select while recording the payment in the Account dropdown menu.
  5. Enter the negative amount equal to the liability value.
  6. Press the Recalculate button, which will make the payroll liabilities amount zero.
  7. Click Save & Close.

 

In case you need help with payroll liability adjustments, you can refer to this guide for complete instructions: Adjust payroll liabilities in QuickBooks Desktop.

 

And if you need to update the expense or liability account associated with your payroll item, just check out this reference: Change an expense or liability account.

 

If you need further assistance in managing your company's expenses and employees' liabilities, I'm available here to help any time. Always take care!

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