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Zoe1
Dec 12, 2017 7:50 PM UTC
Solved

Employer Payroll Tax Expense Account

I'm using QBO and running payroll - the Employer Taxes are being added to an expense account automatically. I'm not using QBO to actually pay the taxes, so when I enter a payroll tax payment it is also going into Payrol Tax expense account. I know I'll have to adjust the liability account at the end of the year, but it seems like something is incorrect here. Currently the expense account just shows double (at least) the payroll taxes, because there's nothing counter-acting the QBO entry for employer payroll taxes. 

 

In my experience QB Desktop did NOT automatically add this expense for me - can someone help me smooth this out?

 

    lynda11_2
    lynda11_2Answer
    Dec 12, 2017 8:20 PM UTC

    If you are using qb payroll, why are you not creating the payroll liabilities thru the program?  If you did that (it is part of the Enhanced module), they clear your liability accts. for you when the payment is created.  I would delete your manual checks and create liability payments (re-reconcile the ones that you deleted).

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    7 replies

    lynda11_2
    lynda11_2Answer
    Dec 12, 2017 8:20 PM UTC

    If you are using qb payroll, why are you not creating the payroll liabilities thru the program?  If you did that (it is part of the Enhanced module), they clear your liability accts. for you when the payment is created.  I would delete your manual checks and create liability payments (re-reconcile the ones that you deleted).

      Zoe1Author
      Dec 18, 2017 9:28 PM UTC

      Hi Lynda, 

      I have that setup with another account and have had SO much trouble getting the payroll liabilities module to work that I would really prefer not to go there with this account. I do not want to use QBO to actually pay the payroll taxes with either account, and it seems like the program has a lot of trouble allowing you to input tax payments made outside the program. I've read all the instructions here, and just have not had a good experience. Do you have any recommendations for the situation without switching to that method? Should I just create a journal entry to negate the auto entries for employer taxes?

      lynda11_2
      lynda11_2
      Dec 19, 2017 12:25 AM UTC
      I have not ever had a problem with the payroll tax payments in QBO payroll. But if you want to pay them on your own, I would contact the service and let them know. They should be able to let you pay by check.

      Desktop Qb Payroll allows for more versatile with payments. The manual way of doing payroll (using a payroll calculator) might’ve the way to go. You can use journal entries and checks to enter payroll.
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