How do you show a liability has been paid if the benefit vendor has issued a credit that covers the liability amount? (i.e. no expense transaction to reference/add)

I am trying to balance out a payroll liability account for one of our benefits. The benefit company has issues a credit that covers the liability amount for the entire month, meaning we owed no payment and a payment was never processed. However, because of this there is no expense transaction that can be added to the liability account to show it has been covered/paid down. What manual adjustment do I need to add to be able to zero out the payroll liabilities account? Would this be a vendor credit memo? Any insight would help, thank you!