Why is a liability account, staff Pension, showing debit balance

Thanks for posting in the Community, saburiiloriaudit.

A debit to a liability account signifies that the business owes less money.

QuickBooks Online International version doesn't have a payroll functionality. With this, you can record your payroll data through journal entry (JE) function. You may use either Expense or Liability account when creating JE for payroll transactions.

Make the following journal entry: DEBIT Pension Contributions, CREDIT Balancing account. Refer to this article for more details: Recording payroll in QuickBooks Online.

You won't need to write cheque if you use the Expense account. You'll need to create a cheque if you're using the Liability account. This will zero out the liability or lower the current outstanding amount.

To ensure you receive the right instructions for entering this into your QuickBooks Online (QBO) account. I advise working with your accountant. They can provide professional guidance on which accounts to debit and credit.

For additional information on managing our business, please feel free to visit our QBO Help Articles page.

If you need further assistance running reports or anything else relating to QBO, reply to this post. I'm here for you whenever you need me. Enjoy your day.