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S
sarahgress01
October 17, 2019
Question

Hi, I took £26.00 from an employees payroll, as an after-tax deduction. Now shows as a liability in "Payroll Liabilities: Other deductions".

  • October 17, 2019
  • 1 reply
  • 0 views
How do I clear this please, back to zero, as the money isn't due to paid by anyone, I have taken it from his pay.

1 reply

BettyJaneB
BettyJaneB
October 17, 2019

Glad to see you again here in the Community, @sarahgress01.

 

I'd like to ensure that we're on the same page in narrowing down this concern. May I ask what is the deduction all about? Any further details are much appreciated for us to clear this issue out.

 

In QuickBooks Online, once you've created an after-tax deduction to an employee it will show up on your payroll liability since it needs to be paid. 

 

To settle this, you'll need to determine what is the deduction is intended for. This is because you will only generate a deduction (voluntary deductions, mandatory deductions, and company contributions) if you're going to pay it on behalf of your employee, or the employee needs to pay something for your business.

 

On the other hand, here's a link that you can refer to how the after-tax deduction work in QuickBooks Online as well as processing an expense to clear out deductions: 

Please get back to me with some more details about this concern as I want to make sure everything is accurate on your end. Take care!

S
sarahgress01Author
October 26, 2019

Hi, sorry I haven't acknowledged, I thought I had replied, but clearly haven't!  Many thanks for your response.

 

Just to clarify, we pay the bill for a mobile phone which the employee has use of.  They had added some extras to the bill which aren't our responsibility, so needed to pay £26.00 to pay for them.  I deducted £26 as an after-tax deduction.  I have checked the maths on the payslip and all is correct.  However, it is now showing as a liability, how do I clear this or match the deduction to the liability entry?  Many thanks

Jen_D
Jen_D
October 26, 2019

It's nice to have you back, @sarahgress01,

 

If this is not included in your books, you can correct the liability balance by entering journal entries. Here's how to enter an adjusting entry in QuickBooks:

 

  1. Click the Plus icon (+) on the Toolbar.
  2. Under Other, select Journal Entry.
  3. Complete the adjusting information.
  4. Hit Save.

Here's a great article to guide you with the steps: Create a journal entry

 

If you need guidance on what accounts to use, I would suggest getting in touch with an accounting professional. They can help you with your adjustments that best fit your organization.

 

If you have any questions about the journal entries or other QuickBooks related topics. Please mention me anytime. I'll be glad to provide further assistance. Have a good one.

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