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Removing old Payroll Liabilities from platform

I have come across the problem where the previous bookkeeper did not mark old payroll liabilities as paid. They show from Summer 2017 as overdue, but they were most definitely paid in 2017.

 

Is there a way to mark them as paid without actually adding a payment in QuickBooks Desktop?

 

We tried making a bill for 2017 and voiding it out, tried entering a $0 bill to see if it would go away, but to no avail. 

 

Again, they were definitely paid in 2017 but I do not know how to remove these notifications since they were not marked as paid in QuickBooks.

 

 

Any ideas?

Best answer 12-10-2018

Accepted Solutions
QuickBooks Team

Re: Removing old Payroll Liabilities from platform

Hello there, @EBuilders.

 

It’s nice to have you in the Community. I’m here to assist you in removing the old payroll liabilities showing as overdue in your account.

 

Since you referenced that the payment was made and liabilities still show as overdue, you can enter historical tax payments to mark them as paid.

 

Here’s how:
1.    Click the Help menu at the top and select About QuickBooks.
2.    On your keyboard, press Ctrl + Alt + Y to open the Setup YTD Amounts window.
3.    Select Next until you reach the Enter prior payments section.
4.    Click Create Payment.
5.    Enter the Payment Date and For Period Ending date accordingly.
6.    In the Taxes and Liabilities field, choose the payroll tax item you’ve already paid and then enter the amount.
7.    Click on Accounts Affected button and select Do not affect accounts. By doing so, the prior payments will not affect your balances or show up in the bank register.
9.    Continue to the next by selecting Next Payment. Once all payments have been entered, click Done to save your work.
10.    Hit Finish to close the window.

 

For additional information, as well as screenshots for the steps above, please visit the following link: Enter historical tax payments in QuickBooks Desktop Payroll.

 

This information should be able to answer your questions on how to remove paid liabilities showing as overdue in the Pay Liabilities section.

 

Please let me know how it goes by leaving a comment below. If you need anything else, don’t hesitate to ask. I’ll be here to help. Have a most pleasant day!

4 Comments
QuickBooks Team

Re: Removing old Payroll Liabilities from platform

Hello there, @EBuilders.

 

It’s nice to have you in the Community. I’m here to assist you in removing the old payroll liabilities showing as overdue in your account.

 

Since you referenced that the payment was made and liabilities still show as overdue, you can enter historical tax payments to mark them as paid.

 

Here’s how:
1.    Click the Help menu at the top and select About QuickBooks.
2.    On your keyboard, press Ctrl + Alt + Y to open the Setup YTD Amounts window.
3.    Select Next until you reach the Enter prior payments section.
4.    Click Create Payment.
5.    Enter the Payment Date and For Period Ending date accordingly.
6.    In the Taxes and Liabilities field, choose the payroll tax item you’ve already paid and then enter the amount.
7.    Click on Accounts Affected button and select Do not affect accounts. By doing so, the prior payments will not affect your balances or show up in the bank register.
9.    Continue to the next by selecting Next Payment. Once all payments have been entered, click Done to save your work.
10.    Hit Finish to close the window.

 

For additional information, as well as screenshots for the steps above, please visit the following link: Enter historical tax payments in QuickBooks Desktop Payroll.

 

This information should be able to answer your questions on how to remove paid liabilities showing as overdue in the Pay Liabilities section.

 

Please let me know how it goes by leaving a comment below. If you need anything else, don’t hesitate to ask. I’ll be here to help. Have a most pleasant day!

Established Community Backer ***

Re: Removing old Payroll Liabilities from platform

There is Never AP Bills as part of QB payroll. It never makes sense to make something and Void it, either. That is just spinning your wheels as busy work.

 

If this is paid, it is supposed to show as a Liability Check. That way, the Payroll Items are listed and that also flows the data to the accounting, to keep, for example, Payroll Liability Balance matched to the Payroll Reporting that lists by Payroll Item the specific amounts unpaid.

 

When someone Pays by manual Write Check, they break that relationship. You need to Find how they paid it. That is needed, so you know what they did wrong.

 

Example: If they Paid as Liability on the Expenses tab of a Write Check, you will Replace their check with your Pay Liability check, same date, amount and check #. Then, you Delete theirs. Then you can rereconcile the bank for the most recent ending balance, and Ignore the beginning balance and clear only these recreated transactions, and you get a difference of 0 and you are back on track. That's because they paid Liability, just not with the proper Tool.

 

If you see they paid it as Expense, that is a different problem. That made a mess in your Financial reporting and orphaned not only the Payroll Item, but also, the Payroll Liability balance, and double-reported the Expense, since this never was the employer's money or expense. In this example, and make sure you run this past your own CPA, you can make one Pay Liability Check for 2017, and select what still shows as needing to be paid. Then, click on the Expenses tab of this liability check and put the same total here as negative, and use the same Expense account they used. Now hit Recalc. You have a $0 check. You offset their error by this Lump Sum. The CPA might need to amend tax reporting, because of this error.

 

And make sure to run the Liability Balances report and for All Dates and Columns by Year, then by Quarter. Also, the Create Custom Liability Payment function is how you can Combine those differently Scheduled liabilities, if you need to use the Lump Sum Expense offset method.

 

Good luck. This is unfortunate.

Community Contributor *

Re: Removing old Payroll Liabilities from platform

This worked perfectly, thank you!

Experienced Member

Re: Removing old Payroll Liabilities from platform

Which of the suggestions worked perfectly for you?