Solved: QBO How to manually record payment from a liability account

Ensure that you use the Previous button in order to view your liability adjustments and then remove it from your account. Health insurance premiums, retirement plan contributions, and other benefit programs are funded through payroll withholding. The employer’s share of the costs is a payroll expense. You may need to create a payment schedule for it – because liabilities without schedules don’t appear in the payroll center. The steps shared by Klent are also applicable for payments made via phone calls.

  • Users can also make changes in company contributions, employee additions, and deductions.
  • I have an employee who has taken a Loan from his 401(k).
  • The expense was posted in March when the restaurant employees worked the hours.
  • Keep me posted if you have additional questions on how to manage your Simple IRA contributions and update your payroll liabilities schedule.

I’ll be more than happy to lend a helping hand, @12-parsecs, and @Datoch00. Check out this video on how to pay your payroll taxes and liabilities. Hello, I was able to pay off most of the payroll taxes. However, there’s still one line that is showing up as unpaid.

Steps to Adjust Overpaid Payroll Liabilities in the Company File

“This puts a positive balance in my liability accounts earmarking the funds for my quarterly IRS tax payment (assuming I’m doing this all correctly).” This puts a positive balance in my liability accounts earmarking the funds for my quarterly IRS tax payment wheres my tax refund how to check your refund status (assuming I’m doing this all correctly). The payroll system does not support creating checks for non-tax liabilities, such as health insurance premiums, 401(k) contributions, and child support. That’s why, you’re unable to create custom liability payments.

To get the best advice on how the payment from your liability accounts should be made, I suggest contacting your accountant so you’ll be guided on how to handle this kind of situation. Now let’s move on to making changes to the payroll tax liabilities in QuickBooks, but before that ensure you have the latest payroll tax table updates installed. When I enter it this way, my chart of account shows a positive amount ($200 for example, not -$200) in my liability accounts, as I understand it should be because I have not actually paid any taxes. Payroll taxes paid by employee and employer are 100% predictable based on employee wages since they are a pre-determined rate as % of gross pay. How do I make custom payroll liability payments in QBO?

Timely payment of your non-tax liabilities is crucial to maintaining accurate financial records. I’m here to offer support and address your concern about making custom liability payments for Simple IRA contributions. This accounting method does not post expenses based on cash inflows and outflows, which is referred to as the cash basis method of accounting. No business should use the cash method because the method presents a distorted view of company profit.

What are payroll liabilities?

If you need to track where your business stands in terms of employee expenses, you can customize the payroll and employee reports. What is the best way to record the online payments I just made in QB, so that the taxes are recorded as being paid and not overdue? In QuickBooks, you can set up scheduled payments and create checks to pay benefits and other deductions to your plan administrators, such as 401(k), insurance premiums, or garnishments. This helps you stay on top of your bills and payments.

Why you Need to Use Payroll Liability Adjustment?

The ‘Actions’ section doesn’t provide any options to mark it ‘paid’. Based on the screenshot you’ve added, it looks like your account is not active. To pay taxes in QuickBooks Online, you will need to have an active payroll service.

a. Adjust Payroll Liabilities

If a worker repays a loan from the employer, the loan payments withheld from pay are not a payroll liability or a payroll expense. Instead, the payment increases the employer’s cash account and reduces a loan-receivable (asset) account. When you submit payments, you also provide reports that explain the purpose of the payments (employee name, amounts withheld, etc.). Your company’s payroll- liabilities chart of accounts may include dozens of balance-sheet account numbers. My first thought is why pay for 3rd party payroll service and not have them handle the payroll taxes for you?

Check the status of your payroll tax payment

By clicking “Continue”, you will leave the community and be taken to that site instead. Please let me know if there’s anything else I can do for you in QuickBooks Online. I’ll provide some guides, steps or solutions to help you out. It is all the little things that many skip over, that add up to make accounting as easy and accurate as possible. Thanks for choosing QuickBooks Online (QBO) in managing your business. I want to ensure you can find success with using our product, MNSTreasurer.

Assisted Payroll users will only have the option to set payment reminders for other payroll liabilities since Intuit already pays the Federal and State taxes for Assisted Payroll customers. QuickBooks Online Payroll doesn’t create the check to pay non-tax liabilities such as Health Insurance premiums, 401(k) contributions, and Child Support. You’ll need to create these payments from the Check screen. No taxes are withheld on compensation paid to independent contractors.