17 Nov Payroll Liability Payments
Payroll Liability Payments
Following proper procedures for the payment of payroll tax liabilities is imperative. If the procedures are not followed, the payroll liability report, as well as the payroll tax returns, will not be accurate. There is no way on the bill or check screens to tell the software which specific payroll items are being paid. The pay payroll liabilities feature must be used to correctly designate the payroll items that are being paid.
Other liabilities, such as garnishments, union dues, health insurance, 401K, etc. should also be paid regularly using the pay payroll liabilities option shown below. If these amounts are not paid in this way, it is possible to do a payroll liability adjustment and not affect the accounts (update the items but not the general ledger).
QBRA-2003: Employees > Process Payroll Liabilities > Pay Payroll Liabilities > Choose date range
TRICK: If the Do It Yourself Payroll Tax Service is used, the software will show the amounts due for the time period, but will not remind the user to actually pay the payroll taxes and liabilities. The Internal Revenue Service usually sends a notice each year to the business that states how often the taxes should be remitted. The state agencies also have their own guidelines. If the business bookkeeper or owner is unsure as to when the taxes should be paid, a call to the accountant or governmental agency should clarify the situation. Penalties and interest add up fast, so tax payments become very expensive if they are paid late.
TRICK: To make sure everything is in balance with the payroll, compare the general ledger liability balances, the payroll liability summary for the year to date, and the payroll liability summary with the date changed to All. All three reports should be the same.
TIP: Electronic Tax Payments and Electronic Returns – If the Assisted Payroll Tax Service is being used, the service pays the Federal and State taxes electronically on behalf of the company. If other liability checks need to be issued, the same procedures as detailed earlier should be followed. When the Employee > Pay Payroll Liabilities option is chosen; the federal and state amounts will not appear. Only any additional liabilities will be available for payment (such as health insurance, 401K, etc).
If for some reason the amounts shown on the payroll liability report or the Pay Liabilities/Taxes screen do not agree with what is actually owed, it is possible to adjust the amounts either up or down. Choose Employees > Process Payroll Liabilities > Adjust Payroll Liabilities. Be sure if an adjustment is made that the accounts affected choices are chosen properly (adjust only the items or the items and the general ledger).