17 Nov Payroll Liability Payment Corrections
Payroll Liability Payment Corrections
When using the payroll features in QuickBooks proper procedures are essential. One of the most common errors is to pay the payroll taxes owed by writing a check or entering a bill. The proper procedure requires the use of the Pay Payroll Liabilities option. If this option is not used, the detail reports as well as the payroll tax returns will not reflect the proper amount of taxes due.
If the payroll tax payments have been entered incorrectly, the following steps can be followed to ensure accurate reporting.
- Create a list of the payments that have been entered incorrectly. A transaction detail report filtered for the appropriate vendor names works well. Be sure that the date and check number are visible. It is also helpful to add the cleared column if the bank reconciliations have already been completed.
- Compile the information as to the payroll tax items and amounts that total the amount of the check.
- Re-enter the payment using the Pay Payroll Liabilities feature in QuickBooks.
- Edit the Payroll Liability check to add the correct check number (confirm the date and amount too).
- Delete the previously entered incorrect check, bill payment, and bill as appropriate.
- If the bank reconciliation has already been completed, enter the ending balance from the last statement (the beginning balance will be off by the amount of the deleted cleared payroll liability payments) and proceed to check of the previously cleared payments. The ending balance should be zero once all are marked. Reconcile Now or click on Done depending on the version to complete the reconciliation process.