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Established Member

New company setup payroll liabilities

I am setting up a new company that has already posted payrolls this year.  I used the payroll wizard to enter all of the accumulated data and then realized it was not affecting the bank account for reconciliation.  I found under the paycheck info the option to have the transactions affect the bank account and it worked perfectly.  However, when I use that same option under the payroll liabilities they do not appear in the reconciliation.  I am at a complete loss how to get them to appear in the bank account when the selection "affect bank account" does not work.  Help!

 

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Established Community Backer ***

Re: New company setup payroll liabilities

Your payroll liabilities are cleared when they are paid, which means they are booked to the payroll liability accounts when payroll is processed and then cleared when the payroll liabilities are paid. 

 

So essentially the recording of your payroll liabilities does not impact your bank account, the payment of those liabilities impacts your bank account.