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rsteenbu52
May 16, 2021
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ICHRA Reimbursements

  • May 16, 2021
  • 1 reply
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We use a third party payroll company who  automatically updates our QB Online with each payroll.  We reimburse our employees through payroll for their health insurance premiums. The reimbursements are downloaded as other liabilities.  This results in  our balance sheet showing a negative figure for Other Liabilities.  I recently lost our bookkeeper and I am in a quandry as to how to correct this (it does need correcting, right?) I am thinking that the remibursements should be going to an account other than "Other Liabilites" Would this correct the problem? Any help would be appreciated.  Thank you.

 

Best answer by SarahannC

Good day, rsteenbu52. 

 

Yes, you got it right. Below are steps to change your payroll account information:

 

  1. Go to the Gear icon in the top right corner.
  2. Select Payroll Settings.
  3. Choose Preferences at the top of the page.
  4. Click Accounting Preferences.
  5. Click the drop-down arrow. Then, choose the correct account for this.

 

 

That will do. You can always check the lists of payroll reports that you can run in QuickBooks Online. This will guide you in accomplishing different information in QBO: Available in QuickBooks Online Payroll.

 

Please let me know if you have other questions. Take care and stay safe always.

1 reply

Jen_D
Jen_D
May 16, 2021

Hello there, @rsteenbu52,

 

I can share some insights on how you can resolve this. Normally, if you have an outside payroll provider, you can record entries in QBO manually to maintain your financials.

 

Manual payroll in QBO is done using journal entries. If you have outstanding balances for the taxes that are already paid, you can resolve it using a JE. Before doing so, we always do recommend getting in touch with an accounting professional when doing some adjustments in your books. 

 

Here are the steps to do that:

 

  1. Press + New then use a Journal Entry.
  2. Under the Journal date, enter the paycheck date.
  3. If you want to track the paycheck number, enter it in the Journal no. field.
  4. To account for the tax payments, use the Federal or State liability tax items and enter the amount in the Debit column. Debiting a liability means reducing its balance.
  5. Next you can put the bank used to pay for the liability, then add the amount to the Credit column.
  6. Once done, save the entry.

 

To guide you further with the manual payroll in QuickBooks, see the following link: Manually enter payroll paychecks in QuickBooks Online

 

Kindly post here again if you have other concerns about payroll or general concerns with QBO. I'll be right here to help you. Have a good one!

    R
    rsteenbu52Author
    May 16, 2021

    All the payroll liabilities download automatically and we clear them through the bank. However, the reimbursements are going to other liabilities and creating negative line items on the balance sheet. If we change the account from other liabilities to employee healthcare reimbursements will that correct the problem?

    S
    SarahannCAnswer
    May 16, 2021

    Good day, rsteenbu52. 

     

    Yes, you got it right. Below are steps to change your payroll account information:

     

    1. Go to the Gear icon in the top right corner.
    2. Select Payroll Settings.
    3. Choose Preferences at the top of the page.
    4. Click Accounting Preferences.
    5. Click the drop-down arrow. Then, choose the correct account for this.

     

     

    That will do. You can always check the lists of payroll reports that you can run in QuickBooks Online. This will guide you in accomplishing different information in QBO: Available in QuickBooks Online Payroll.

     

    Please let me know if you have other questions. Take care and stay safe always.

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