Skip to main content
M
modemers
January 11, 2024
Question

payroll liability checks debit & credit same bank account

  • January 11, 2024
  • 2 replies
  • 0 views

We have liability checks deducted from employees payroll. Payroll is funded out of our general funds account in QuickBooks.  When I process the liability check, QB posts it as a debit.  But in order to reconcile with my bank statement, I have to deposit it back into the same bank account or I don't have a corresponding deposit to balance against..  The bank thinks I'm nuts. 

How else can I handle this?

2 replies

G
GenmarieM
January 11, 2024

Hello there, @modemers.

 

I am here to share some insights about creating a payroll liability check in QuickBooks Desktop (QBDT).

 

It is important to note that QBDT will only rely on what data was sent by your bank or financial institution. You can check your bank statement to compare them.

 

If it is money out and downloaded as a debit entry, not a credit, you'll need to exclude or ignore it and then manually clear the liability check in the chart of accounts.

 

In case you want to match these entries, you can manually upload the correct entries after excluding them.

 

Furthermore, I am adding this helpful article as your reference in filing your payroll taxes in QuickBooks Desktop: E-file and e-pay state forms and taxes in QuickBooks Desktop Payroll Enhanced.

 

Please don't hesitate to return to this post if you have other concerns about payroll liability checks. I'll be here to lend a hand.

M
modemersAuthor
January 15, 2024

Sorry. Apparently I’ve not been clear on the issue.  The deductions I refer to are NOT taxes.

I work for a union.  The staff in the office work under the same contract as the members.  The members work for outside signatory contractors.  I work for the union itself.

Our contract requires certain deductions be taken from employee wages (membership dues, scholarship fund, etc…)  The Quickbooks desktop payroll module debits our general operating bank account to fund payroll.  So liability checks are generated and posted in QB on that bank account.  However, one of our deductions (collected from us AND all other contractors) is deposited into the same account at the bank.  No problem when the funds come from outside sources (other contractors).  But when I do MY payroll the module creates a liability check. Since the money is already IN the general operating account, I’d like a way to just leave it there.  But how do I process (pay) the liability check without actually printing it and re-depositing it???  I can’t void it.  I can’t delete it.  I can’t ignore it. 

Rainflurry
Rainflurry
January 11, 2024

@modemers 

 

"We have liability checks deducted from employees payroll. Payroll is funded out of our general funds account in QuickBooks. When I process the liability check, QB posts it as a debit."

 

I don't fully understand your question either.  You don't have liability checks deducted from employees payroll.  You first need to increase the liability through the payroll deduction (credit), then you issue the check and that decreases the liability (debit).  I have no idea what you mean by "I have to deposit it back into the same bank account or I don't have a corresponding deposit to balance against".  The liability is funded by the payroll deduction from employee wages or your company expense with the company cash.  Is that the "deposit" you're referring to?

M
modemersAuthor
January 15, 2024

Sorry. Apparently I’ve not been clear on the issue.  The deductions I refer to are NOT taxes.

I work for a union.  The staff in the office work under the same contract as the members.  The members work for outside signatory contractors.  I work for the union itself.

Our contract requires certain deductions be taken from employee wages (membership dues, scholarship fund, etc…)  The Quickbooks desktop payroll module debits our general operating bank account to fund payroll.  So liability checks are generated and posted in QB on that bank account.  However, one of our deductions (collected from us AND all other contractors) is deposited into the same account at the bank.  No problem when the funds come from outside sources (other contractors).  But when I do MY payroll the module creates a liability check. Since the money is already IN the general operating account, I’d like a way to just leave it there.  But how do I process (pay) the liability check without actually printing it and re-depositing it???  I can’t void it.  I can’t delete it.  I can’t ignore it. 

Terms & ConditionsAccessibility statement