Get apprised of the convenient approaches to reconcile payroll liabilities in QuickBooks.
Are you hunting for the right steps to reconcile payroll liabilities in QuickBooks? All your questions shall be answered by this lucid piece of writing, which demands your keen attention. Well, payroll liabilities in QuickBooks can simply be categorized into two basic categories:
- Employer Expenses
- Employee Liability
These two are further classified into sub categories: federal income tax, state income tax, social security withholding, and Medicare withholding. It should be noted that some liabilities that are required to get recorded in the liability accounts shouldn’t be entered into the expense account. Moreover, the balances in these liabilities should be zero. Reconciling isn’t only associated with cross-checking the current and the savings bank accounts, rather it is a lot more than that.
This piece of writing is written with an intent to brief the readers with the entire steps involved in reconciling payroll liabilities in QuickBooks. Get a better grip onto the process by reading this segment with much care. you can also connect with us at personal level using our tech support line.
You can read also: Fix QuickBooks Error 15212 When Update QuickBooks Payroll
Important steps for reconciling payroll liabilities in QuickBooks
Below steps can be perform, so as to reconcile payroll liabilities successfully. Let us check out:
1st Step: Creation of Liability accounts
- Start off with making a list of the liability accounts
- Below is the list of the payroll liability accounts that are required to reconcile.
- Federal income tax withholding payable
- Statement income tax withholding payable
- FICA tax payable
- 401k or retirement benefit premiums payable
- Health insurance payable
2nd Step: Creation of Transaction labels
- Furthermore, you need to create transaction labels to separate employee and employer payroll liability transactions
- Herein, one needs to turn on tagging from the settings tab and then the QuickBooks lab
- You need to look for the tags feature and turn it on by clicking on the done tab when getting the confirmation
- Further, create a new tag group
- You need to head to the settings tab and go for tags
- Also choose new and then tag group
- You will have to name the new tag group payroll liabilities and hit save.
3rd Step: Creating payroll liability sheets
- You need to now set up payroll liability reconciliation sheets
4th Step: Printing the reports
- Moreover, print reports from your QuickBooks payroll software and general ledger. You can either print these reports or send them via the email, as per your convenience and requirement.
5th Step: Reviewing the transaction
- Once done with that, you need to review each payroll liability transaction and also reconcile outstanding items. This step is important as it double-checks any aberrations or mismatch in the payroll transactions.
6th Step: Fixing Reconciling items
- Later on, you need to fix payroll liability reconciling items.
Procedure to Reconcile Payroll Liabilities in QuickBooks Payroll
Below are the steps to reconcile payroll liabilities in QuickBooks online manually.
- Start off with selecting Taxes in the QuickBooks online navigation bar.
- Furthermore, you need to click on Payroll taxes option and under pay taxes and hit enter Prior tax history.
- You need to now choose Current year and liability period.
- Moreover, click on Add payment and choose Tax type to reconcile payroll tax returns.
- You are supposed to enter Liability period and Period date along with Check number and notes.
- Create a credit by creating a Negative amount.
- Lastly, you would have to click on OK tab.
Read Also: How to Troubleshoot Unable to Print Problem in QuickBooks?
Performing the steps discussed in above might be of great help in reconciling payroll liabilities in QuickBooks. As always, if you have any query, comments, or concerns, reach out us immediately at 1-800-761-1787. Our QuickBooks payroll support team will be pleased to assist you!
Frequently Asked Questions (FAQs)
Q1. What are payroll liabilities in QuickBooks?
A1. The various payroll liabilities in QuickBooks encompass the wages of employees, payroll taxes, employee education, and service costs.
Q2. What is the difference between QuickBooks payroll liabilities and expenses?
A2. Liabilities subsume the costs that employers are required to pay for hiring employees. On the contrary, expenses are the costs of running the business on a daily basis.
Q3. What is the procedure for fixing payroll liabilities in QuickBooks?
A3. The steps for fixing payroll liabilities in QuickBooks are:
- Head to the Employees tab.
- Therein, choose Payroll Taxes and Liabilities option.
- Pick the option to Adjust Payroll Liabilities.
- Choose the last paycheck date of the month affected in the Effective date field.
- In the ‘Adjustment is for:’ hit on the Employee Adjustment option.
- Rectify the employee’s YTD information.
How to Fix QuickBooks Desktop Update Errors?
Steps to Set up and Configure Email Service in QuickBooks