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Payroll tax returns are prepared and filed showing no balance due (and no notices to the contrary are received) Payroll, (and inventory discussed elsewhere), are two areas where QuickBooks is a smaller amount forgiving and clients are more likely to form mistakes. most frequently the errors are the results of incorrect or inconsistent procedures.

The most common error during this area is that the Pay Payroll Liabilities feature wasn't used; rather payroll tax payments were entered using Write Checks or Enter/Pay Bill functions.

Error: If you've got payroll liabilities that you simply got to pay on regular basis, ... If you've got QuickBooks Desktop Payroll Assisted, Intuit pays your payroll tax liabilities on your behalf.


<> Payroll Liabilities are above expected

<> Payroll Tax Expense is above expected

<> checking account balance appears correct

Warnings Reduce Errors

QuickBooks does warn users in several instances when the recommended procedures aren't followed. If users heed the warnings, errors are often avoided. However, some users will click past these warnings and still process the payroll incorrectly perhaps for a scarcity of understanding on the way to do otherwise.

A client must first subscribe one among Intuit’s payroll offerings for payroll to be established. Once payroll is installed, a Payroll Setup Tool walks the client through the method .

QuickBooks payroll works best when all payroll activity is performed from within the payroll menus. This includes paying accrued payroll taxes to the respective taxing authorities. If the corporate has written checks or used the Enter/Pay Bills entered bills functionality to buy these liabilities, and therefore the QuickBooks-created Payroll Liabilities account was assigned, the subsequent warning message appears:

This message warns but doesn't prevent users about using the incorrect sort of payment (i.e., Write Checks or Enter/Pay Bills) when attempting to form payroll liability payments. When the user clicks the Pay Payroll Liabilities button within the warning message, the user is directed to the Select Date Range for Liabilities dialog. The message directs the user to use the Pay Payroll Liabilities feature to make a payroll liability check.

Correcting Payroll Liability Payment Errors

Payroll liabilities payments are often corrected via two methods. First, if a check or bill payment was wont to pay a payroll liability, determine if the check or bill payment check has been cleared during a bank reconciliation. If not, void the prevailing check or bill that's paying the payroll liabilities and recreate the check correctly by selecting Employees > Payroll Taxes & Liabilities, then Pay Scheduled Liabilities.

The second method should be used if the check or bill payment check was used which check has been cleared during a bank reconciliation, employing a Journal Entry isn't a preferred method to form the correction, instead the Payroll Liability Adjustment option should be wont to make the correction.

Getting the Red Out – Clearing Out overdue Liabilities

The Pay Scheduled Liabilities section within the Payroll Center may have red overdue amounts showing when none exist. The liabilities amounts appear within the section when a payroll is generated and are only reduced when the Pay Scheduled Liabilities method is employed to pay the taxes due. If the liabilities were recorded through the other method, like a check being written and coded to the Payroll Liabilities account, the liabilities shown as due won't be reduced.

1. First, verify that the liabilities are paid.

2. Select the acceptable item from the Pay Scheduled Liabilities window as shown below and click on the View/Pay button.

3. within the Liability Payment – Checking window, change the check amount to zero.

4. Add additional lines within the expenses area for an equivalent accounts already listed with a negative amount to offset the entry.

5. Include the check number actually wont to pay the liabilities within the memo section as a reference.

6. The result are going to be offsetting amounts to the liabilities accounts which can clear the Pay Scheduled Liabilities window, but not affect the overall ledger accounts.

Additional Areas to Troubleshoot Payroll Errors

Importance of Payroll Item Account Mapping

Payroll items must be assigned an account so payroll transactions are often properly recorded within the ledger . Errors within the found out of the payroll item mapping are often located through a Payroll Items Listing report. Select Reports > Lists > Payroll Item Listing report. This report shows the payroll earnings, deductions, and tax items also because the current tax table limits and rates. Use this report back to make sure the desired ledger account is getting used . Double-click on any item to form changes. Changes are often applied to all or any transactions, future and prior, only prior transactions from a date forward or no prior transactions.

Reconciling Payroll Transactions within the Bank Reconciliation Process

The Intuit payroll subscription will determine whether all federal and state payroll tax forms for filing are available within QuickBooks. If you or the client is preparing the payroll, it's knowing first complete the bank reconciliation to work out any payroll liability payments which haven't cleared and handle them accordingly.

Locating Non-Payroll Transactions

Users sometimes override error message and record transactions that ought to appear on payroll reports. Identifying these before the payroll tax returns are prepared and filed can save the time to amend or correct these payroll returns afterward .

From the workers menu, choose Employee Center, then the Transactions tab. From this area, select the Non-Payroll Transactions and within the Date area, select the period of time that the payroll reports are being generated.

Shown within the example below may be a non-payroll check issued to Gregg. While the check could also be recorded properly, this check can also be recorded improperly. This review will make that determination.

Creating Payroll Liability Checks Directly within the Checkbook Register

1. Choose Employees > Payroll Center.
2. within the Payroll Center, attend the Pay Liabilities tab.
3. within the Select Date Range for Liabilities window, set the date range to incorporate all the checks 4. created in Write Checks and click on OK.

The Pay Scheduled Liabilities section within the Payroll Center is then incorrect. See the Getting the Red Out—Clearing out overdue Liabilities section earlier for step by step instructions on the way to correct these entries.

If the liabilities got to be adjusted and therefore the checking account has been reconciled in QuickBooks, differently to correct the liability is by selecting Employees > Employee Center. The Liability Adjustment window appears and changes are often made either to or to not affect the overall Ledger accounts counting on how the checks to pay the liabilities were originally written.

NOTE: Choose don't affect accounts if the overall Ledger is correct overall and will not be affected. this example would arise if the client paid the right amount of the payroll liability and used the right ledger coding on the checks written to the taxing authorities, but simply didn't write the checks correctly using the Pay Scheduled Liabilities area of QuickBooks.

The subsequent panel appears. the overall ledger are going to be update with the adjustment.

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