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richard96
Level 5

Employment Allowance - Core Payroll

Can we please go back to how Standard Payroll processed the Employment Allowance? A nice journal behind the scenes, dated on the same date as the pay run, crediting the pay I&E and debiting the payroll HMRC liability.

 

The new Core Payroll posts a weird zero Tax Payment to HMRC to the bank account on the 5th of the month after. The effect is the same, but there is no reason for it to hit the bank account, where every client gets anxious until you can explain to them to ignore it. And it throws every month-end/year-end out because the payroll liability is not the correct value until the 5th of the following month, when the Tax Payment hits the ledger.

 

Come on Intuit, this is basic stuff!

2 REPLIES 2
RoseJillB
QuickBooks Team

Employment Allowance - Core Payroll

Hello there, @richard96.

 

I acknowledge your thoughts after switching a payroll plan in QuickBooks. However, QuickBooks Standard Payroll has been replaced by Core Payroll to enhance customer experience and enable us to deliver features faster.

 

Concerning the zero tax payment to HMRC, this is intended to ensure that the payroll liabilities are recorded accurately in the system. I understand that this can lead to confusion for clients, as it may appear as an inaccurate liability until the actual payment is processed. Thus, I recommend communicating the timing and nature of these postings clearly to clients to avoid misunderstandings regarding their payroll liabilities.

 

While we consider your experience with the application, you can submit feedback regarding how QuickBooks Core Payroll works with tax payments and how we can improve this for your business needs. You can follow the steps below to begin:

 

  1. Go to the Gear icon.
  2. Select Feedback.
  3. Enter a brief description of your product suggestion.
  4. Click Next to submit feedback.

 

Learn how to get the most out of QuickBooks Online Core Payroll with our comprehensive collection of help articles and step-by-step guides in this article: QuickBooks Online Core Payroll | Resource Hub.

 

Feel free to add a reply if you have additional questions about tax payments or to clarify entries from your company file, @richard96. I'm just a few clicks away to help. Stay safe! 

richard96
Level 5

Employment Allowance - Core Payroll

The issue is QB no longer shows a true and fair view of the accounts at each month end, as the adjustment for employment allowance doesn't happen until the next month. Which is a bit of a deal breaker for an accountancy package really.

 

Therefore we have to manually adjust this by posting a reversing journal each month to correct the incorrectly stated liability. Which is a massive waste of time!

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