How do I clear out old Payroll Liabilities without affecting previous tax returns?

Hi there Ataraxis_85,

It's crucial that all payroll liability accounts have the correct totals so that your books are correctly balanced. QuickBooks Desktop gives you the ability to move money from one account to another by using general journal entries. I can provide some information about how to clear out your payroll liability accounts.

In order to move money between two or more accounts as an adjustment to the books, you can use a General Journal Entry. You can create one by clicking on the Accountant option in the top bar, then select Make general journal entries. You can then select which accounts you want to affect in order to balance out the amounts left in your payroll liability accounts. In order to know what other accounts to use in order to clear out the amount, I recommend speaking to your accountant. They'll be able to analyze your books to see where the money should go to balance everything out. If you'd like to find an accountant near you that has experience with QuickBooks, you can check out our Find an accountant site.

If you have any other questions, feel free to reach out here.