Skip to main content
D
debbiedp
May 8, 2024
Question

company paid moving expenses

  • May 8, 2024
  • 1 reply
  • 0 views

We paid the moving company directly for a recent new employee. I set up a payroll item called "Moving Expenses pd by Company" as a Company Contribution with Fringe Benefits tax tracking so that it will show up for tax purposes as income on the W-2 for this year. 

In the payroll item set-up, I listed Payroll Liabilities in the the Liability account (company-paid):

For the Expense account:  I listed our expense line item "7235 - Benefits: 85995 - Moving Expenses"

I know now that doesn't work because although it seemed to work fine for the payroll aspect, now I have that additional amount showing up in our Moving Expenses for April where it was listed on the paycheck.  I have to find a way to get it out of that expense account, because we aren't paying it twice, we just have to show what we already paid with his income.  Should I have done this as an Adjust Liabilities item and told it not to affect accounts?  I use Adjust Liabilities to post pension plan payments to employee wages for tax purposes, but for that I do have it affect accounts because I then use the Pay Liabilities feature to issue the check for the payment.  I'm not sure what all happens behind the scenes when you use Adjust Liabilities feature and tell it not to affect accounts.

 

1 reply

S
SheandL
May 8, 2024

I'm here to provide an overview of the Adjust Liabilities feature in QuickBooks Desktop, @debbiedp.

 

When you enter incorrect information in your employee's payroll, we use this functionality to make corrections. I'll lay down reasons why we need to make use of this feature:

 

  •  When you mistakenly use the wrong tax tracking type in a payroll item.
  • To resolve a year-to-date (YTD) wages, taxes, and deductions item.
  • Make adjustments to the amount set for company deduction and contribution.

 

Please visit this article for reference: Adjust payroll liabilities in QuickBooks Desktop Payroll.

 

Moreover. it's best to consult your accountant for guidance on since they have the knowledge to assist you in handling this. 

 

Additionally, here's a helpful article you can read about personalizing, managing, and keeping track of your employee's payroll in QBDT: Customize payroll and employee reports.

 

Let me know in the comments if you have further questions about using Adjust Liability feature. I'm always ready to help you anytime. I'm just one reply away.

D
debbiedpAuthor
May 8, 2024

Adjust Liabilities doesn't work for this if I click don't affect accounts, because then the paycheck doesn't add in the tax amounts. (I did a test to try it out for next month's paycheck and then deleted it before seeing your reply.)

What is the correct procedure for setting up the payroll item for a fringe benefit that has already been paid so that it doesn't post the expense twice?

M
MichaelaS
May 8, 2024

Allow me to chime in and help you remove the payments from your liability screen to prevent duplicate postings, @debbiedp.

 

The correct procedure to avoid duplicate posting for the pending liabilities is to make a prior payment to ensure it impacts the liability account if you have already recorded the moving expenses. If not, then you must affect both the liability and bank accounts.

 

Here's how: 

 

  1. Go to the Help menu and choose About QuickBooks.
  2. Press Ctrl + Alt + Y or Ctrl + Shift + Y to open the Setup YTD Amounts window.
  3. Select Next until you reach the Enter Prior Payments section.
  4. In the Enter Prior Payments window, select Create Payment to enter all prior payroll tax and non-tax payroll liability payments.
  5. Put the Payment Date based on what's in the liability screen.
  6. In the Taxes and Liabilities field, select the payroll tax item you've already paid and want to record in QuickBooks Desktop. After, input the amount. 
  7. Open Accounts and Affected, then select Affect liability accounts but not the bank account if you already recorded the moving expense. If not, choose Affect Liability and Bank accounts.
  8.  Select Done to save your work.
  9. Select Finish to close the window.

 

Please reach out to Payroll Support to further assist you in checking the moving expenses. Our support hours are from Monday-Friday, 6 AM to 6 PM PT.

 

Moreover, check this article to guide you if you need to pay your federal taxes and file the necessary payroll forms: E-file and e-pay federal forms and taxes.

 

Keep us posted if you have other questions about liability payments. We're here to help you promptly. Stay safe.

Terms & ConditionsAccessibility statement