I accidentally wrote a liability check for federal payroll taxes as a regular check in QuickBooks (under Write Checks). Because the check has been reconciled and is now cleared in QuickBooks, I don't want to delete the check and re-enter it under Pay Liabilities. Instead, in Pay Liabilities, I entered a negative amount that matches the liability amount in the expense tab on the liability check. That brought the amount down to zero. Is it okay to leave it like this? I also wrote several penalty checks as regular checks in QuickBooks. Are these okay to leave as well? Or do penalties need to be expensed in Pay Liabilities?
Thanks for reaching out the Community support, @ABH89.
Let’s get this straightened out for you.
You’re on the right track in correcting those paid payroll liabilities written in Write Checks. Creating a negative amount that is equal to the liability checks zeroes out the check amount.
In addition, penalties are not part of the Payroll Liabilities and should be tag under Expenses when creating a liability payment in QuickBooks Desktop.
I’ve got you an article on how to handle liability payments made in Write Checks: Correct liability payments made in Write Checks instead of Pay Liabilities.
Keep in touch if you have additional questions while correcting liability checks. I’d be glad to answer them for you.