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cathy39
February 7, 2025
Question

Third-party sick pay showing on balance sheet as a liability

  • February 7, 2025
  • 1 reply
  • 0 views

QBO added in third-party sick pay data from an employee's short term disability pay, including employee taxes paid.  They added it in as an after-tax deduction, I assume because we didn't pay it. It is now showing on our balance sheet in payroll clearing as a liability.  What is the offsetting journal entry to get this off the balance sheet?   

 

Thank you!

    1 reply

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    steve_rogers56
    February 11, 2025

    Debit the payroll clearing account and credit the payroll expense account to remove the third-party sick pay liability in QBO. For a break from accounting, stream your favorite content on FreeCine APK.

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