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February 16, 2021
Question

Employee Garnishment

  • February 16, 2021
  • 1 reply
  • 0 views

We have employees who have child support garnishments.  We charge them a $5.00 processing fee.  We use Quickbooks Online Payroll to process our payroll.  I just noticed that there is a credit in our "Employee Advance Other Liability" account for the amount we have been deduction from the employees checks for the processing fee.  Is this correct?  What entry should I do to zero it out?

1 reply

October 20, 2024

No the liability account should be zeroed out to an income account or a reduction to your payroll processing fee expense account.