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janet-chester-no
Level 1

Employer Allowance - Er NICs till showing as expense and liability

Hi

I see there was discussion about this two years ago, but wonder if this problem has been resolved now and there is a simple way to correct this.  In April 2022 payroll, the P32 shows the Employer NICs reduced to £0 by the employer allowance correctly, but the NICs due (which should be £0) is still showing as a liability and an expense in the Chart of Accounts.  I have sent the EPS for April 2022.  I have marked in settings that our company is entitled to the £5,000 employer allowance for 2022/23.

Does anyone know how to clear the liability and expense from the Chart of Accounts?  Thank you.

Solved
Best answer May 06, 2022

Accepted Solutions
LieraMarie_A
QuickBooks Team

Employer Allowance - Er NICs till showing as expense and liability

Hi there, @janet-chester-no.

 

Hope you're doing well. Thank you for bringing up your concern. 

 

For now, there isn't a direct way to clear the balances in COA. You may need to create journal entries to clear the liability and expenses, but we suggest consulting an accountant. You can visit this link to look for an accountant or bookkeeper near you: Find an Accountant.

 

Here's how to create a journal entry:

 

  1. Click the Plus icon at the left panel.
  2. Select Journal Entry.
  3. Choose a journal date.
  4. Fill out the fields to create your journal entry.
  5. Click Save and new or Save and close.

 

I'm also adding this article to help you along the way: Payroll Tax Changes.

 

Fill me in if you still have questions or concerns with QuickBooks. I'm always here for you. Take care and have a good one, @janet-chester-no.

 

View solution in original post

1 REPLY 1
LieraMarie_A
QuickBooks Team

Employer Allowance - Er NICs till showing as expense and liability

Hi there, @janet-chester-no.

 

Hope you're doing well. Thank you for bringing up your concern. 

 

For now, there isn't a direct way to clear the balances in COA. You may need to create journal entries to clear the liability and expenses, but we suggest consulting an accountant. You can visit this link to look for an accountant or bookkeeper near you: Find an Accountant.

 

Here's how to create a journal entry:

 

  1. Click the Plus icon at the left panel.
  2. Select Journal Entry.
  3. Choose a journal date.
  4. Fill out the fields to create your journal entry.
  5. Click Save and new or Save and close.

 

I'm also adding this article to help you along the way: Payroll Tax Changes.

 

Fill me in if you still have questions or concerns with QuickBooks. I'm always here for you. Take care and have a good one, @janet-chester-no.

 

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