Taxpayers have a propensity of over-remunerating their taxes. There are multiple reasons for this. In most cases, this inaccuracy is due to incorrect assessment of taxes. Particularly, if you are using QuickBooks for paying your taxes, it is imperative to zero out payroll liabilities in QuickBooks so as to discard any inaccuracies in the payment of taxes. In this thorough article, we shall be encompassing all the potential steps to zero out such liabilities.
Notably, the payroll liabilities subsume the taxation amount of employees that is being put on hold by the company. We shall uncover all the relevant information in this blog. So make sure to stick around till the end.
What is the necessity to zero out Payroll Liabilities in QuickBooks?
The major factors that necessitate zeroing of payroll liabilities in QuickBooks are given below:
- You might need to zero out liabilities if the workers are no longer receiving checks.
- When you plan to make adjustments to the Health Savings Account covered by the commitments of the Company to its employees.
- Zeroing out is also important when the employee compensation equals the net estimated compensation.
- Necessity of paying all the liabilities makes zeroing out an inevitable process.
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Procedure to Zero Out Payroll Liabilities in QuickBooks
Checkout these DIY (Do it yourself) steps in order to zero out payroll liabilities In QuickBooks:
Step 1: Alterations to be done by the Company:
- To start off you need to open QuickBooks.
- Now, click on the Employees tab.
- You then need to select Payroll Taxes and Liabilities option.
- Go ahead with the option to modify payroll taxes and liabilities.
- You are supposed to choose the option to Adjust Payroll Liabilities.
- Also, pick the adequate modification date.
- Now, select Company option from the Adjustment option.
- Click on the Edit option from the item name drop-down.
- Enter the negative value sum.
- Pick the Affected Accounts option and choose affect Accounts for Liabilities and Expenses.
- Also, make sure to click on the option to Not Affect Accounts. Click on it if you don’t want your accounts to be affected.
- After that, click on Ok.
Alterations to be done by the Employee
- Select an Employee from the Adjustment for Fragment list.
- From the drop-down menu, select the employees whose names you wish to change.
- The payroll item must be selected from the Taxes and Liabilities section, and the negative amount needs to be entered.
- Follow the on-screen directions for modifying the company plan in order to save the changes.
Steps to get Overpaid Liability as a Payroll Tax Liability Credit
- Open QuickBooks and then choose the account that needs to be credited under the Expenses tab.
- Now, enter the Negative amount that needs to be credited in the Amount field.
- Fill out the Memo section with the clarification for the modification.
- You now need to replace the check amount with the credit amount by clicking on the Recalculate option.
- Make similar advances if there is any remaining credit.
- Notably, the payroll liabilities balance report requires crucial data regarding the payroll items assigned to a liability account, the majority of company-related obligations, and derivations.
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Liabilities is the money you owe someone but haven’t yet paid them. If the reports on payroll liabilities reveal incorrect accounts, it becomes imperative to zero out payroll liabilities in QuickBooks. In this article we have covered all the steps that can help you in accomplishing the procedure. For further assistance, just call our QuickBooks payroll support experts at the helpline i.e., +1-800-761-1787 to get all your QB-queries rooted out.
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