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insidepark
April 21, 2020
Question

PAYE liabilities report and payments

  • April 21, 2020
  • 3 replies
  • 0 views

I have just changed from using QB Desktop with payroll for many years, to QB Online with Standard Payroll.  In Desktop you could view and print your 'Payroll Liabilities Report' and then 'Pay Liabilities' which would populate the payment cheque with the relevant amounts.  This worked for both PAYE and Workplace Pensions.   I cannot find anything like that in QB Online and would like assistance in how to pay the monthly PAYE liabilities

 

thanks

    3 replies

    Rose-A
    Rose-A
    April 21, 2020

    Congratulations on your new QuickBooks Online account, insidepark.

     

    I'm here to assist in paying your liabilities in QuickBooks. To populate the report in QuickBooks Online using the Standard Payroll, you'll need to generate the Employment Payment Record (P32) report.

     

    Here's how to access the report:

     

    1. Go to view your reports in QuickBooks.
    2. Under Employment Payment Record, select Run.
    3. Select the current year. The report opens in a PDF viewer, showing some of the following:
      • Tax period and tax period dates
      • Your net Income Tax (this is the sum of Income tax (PAYE) and student loan deductions made from your employees).
      • Your gross and net NICs (the sum of your NICs from employee and employer contributions).
      • Total deductions from NICs, which include any recoveries for SMP or SPP paid to employees. Also, if you are entitled to Small Employers' Relief, the additional 3% NIC compensation.
      • Employment Allowance, if you are entitled to claim this.
      • Amount Due to HMRC for the relevant tax month.

    Once done you can submit the payment to HMRC. You can go through these articles to help guide you and manage your payroll transactions:

     

    Workplace Pension reports

    QuickBooks Online Standard Payroll Hub

     

    If there's anything else I can help you with, please let me know. I'd love to help and provide additional assistance. Have a good one.

    I
    insideparkAuthor
    April 22, 2020

    Thank you for your reply. 

    I had got as far as the p32 report to get the monthly figures due, but how do I actually pay this within Quickbooks so it shows as a payment in the bank account that can then be reconciled against my actual bank account?  In QB Desktop one creates a cheque to pay liabilities - how do I do this in QB online?

      G
      GeorgiaC
      April 22, 2020

      Hi insidepark, 

       

      The automated payroll journal will post the wage expense automatically to the chosen net pay account (entered within the payroll settings). 

       

      The liabilities are posted to the respective 'Payroll Liabilities' sub-accounts below:

       

      Payroll Liabilities: HMRC

      Payroll Liabilities: Pension

      Payroll Liabilities: Other Deductions 

       

      You can view these accounts by searching for 'Payroll Liabilities' on the search bar within your Chart of Accounts (Accounting > Chart of Accounts).

       

      To record paying these, create an expense transaction and select the applicable payroll liability category on the 'Category' drop-down. You will then see the liability account reduce by this amount once saved. 

       

      Thank you 

       

      R
      ReymondO
      April 24, 2020

      Allow me to help you with your payroll concern, @insidepark.

       

      If you make an account inactive, QuickBooks creates a journal entry to offset the balance. This moves the remaining balance to another account so it doesn't disappear from your books. Your existing transactions in the account don't disappear and stay on your financial reports.

       

      I also recommend reaching out to your accountant before you start. This will make sure that this change is right for you.

       

      When you're ready to make an account inactive, you can follow these steps:

       

      1. Go to Settings and click Chart of Accounts.
      2. Find the account you want to delete.
      3. Select the Action drop-down and select Make inactive.

       

      This hides the account from menus and your chart of accounts. To see your inactive accounts, here are the steps to follow:

       

      1. Click the Gear icon and select Chart of accounts.
      2. Click the small Gear icon at the top of the list.
      3. Select the Include inactive checkbox.

       

      Please take note that once you run a report, you’ll still see inactive accounts and their transactions. QuickBooks includes them to keep everything accurate. You can customise these reports to hide inactive accounts.

       

      The Community always has your back, so please let me know if you have other questions.

      MariaSoledadG
      MariaSoledadG
      January 13, 2021

      Let me share some details and help you find out if you have mapped correctly your accounts, garfb.

       

      Normally, if no location-specific accounts are being mapped, these will go directly to your primary accounts. That's why you're seeing transactions posted to 3 accounts. Make sure to map them correctly to different payroll transactions types so it would post to the correct account. 

       

      In addition, Journals are produced based on the General Ledger account which has been mapped to the transaction type. Those transactions are created based on transaction hierarchy and are defined as follows.

       

      Top Level:
      Default Account Mappings

      Second Level:
      Pay Category Mappings, Deduction Category Mappings, Expense Category Mappings

      Third Level:
      Location-specific default account mappings

      Fourth Level:
      Location-specific Pay Category Mappings, Deduction Category Mappings, Expense Category Mappings

       

      Transactions are matched to the General Ledger account from the lowest level to the highest level. Also, expense category transaction accounts are used to allocate specific expenses to different General Ledger accounts. If you don't specify an expense account, the transactions will be posted to the Employee Expenses Account by default.

       

      To give you more information, please read this article: Mapping General Ledger Account.

       

      For reference, you'll want to check out this QuickBooks Online Standard Payroll hub for more information about payroll.

       

      Reply to a comment below if the accounts are still posting to different accounts. I'll be right here to help you, just let me know.

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