I'm here to ensure you can make the necessary adjustment for Employment Allowance in QuickBooks, sld2012. This way, you'll be able to update the balance you owe to HMRC to £0.00. I'd suggest turning off the Employment Allowance feature in the Payroll tab from Account and Settings. This way, it'll remove the allowance and zero out your balance. Here's how:Go to the Account and Settings menu.Select the Payroll tab.Click anywhere in the Employer NI relief section.Select the No, I don't qualify button in the Employment Allowance section.Click Save, then Done. After that, you'll have to resubmit your EPS filing to the HMRC. Let me guide you how.Go to the Taxes menu.Select Payroll Tax.Choose the EPS and view the details.Click Submit. Furthermore, you're unable to enter your payments you make to the HMRC with Standard Payroll. The P32 report just shows the liability/amount you need to pay. Just write a check for record-keeping and pay directly to the agency. Moreover, you can effectively manage your payroll account and employees by referring to this article: QuickBooks Online Standard Payroll Hub. It contains topics about setting up and run payroll, manage employees, Real Time Information (RTI), Workplace Pensions, and reports. Please let me know if you have other concerns. I'm just around to help.

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Adjust Payroll Liabilities

Forum|Forum|6 years ago
May 7, 2020
11 replies
15 views

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QuickBooks Online

Best answer by Rea_M

I'm here to ensure you can make the necessary adjustment for Employment Allowance in QuickBooks, sld2012. This way, you'll be able to update the balance you owe to HMRC to £0.00.

I'd suggest turning off the Employment Allowance feature in the Payroll tab from Account and Settings. This way, it'll remove the allowance and zero out your balance. Here's how:

Go to the Account and Settings menu.
Select the Payroll tab.
Click anywhere in the Employer NI relief section.
Select the No, I don't qualify button in the Employment Allowance section.
Click Save, then Done.

After that, you'll have to resubmit your EPS filing to the HMRC. Let me guide you how.

Go to the Taxes menu.
Select Payroll Tax.
Choose the EPS and view the details.
Click Submit.

Furthermore, you're unable to enter your payments you make to the HMRC with Standard Payroll. The P32 report just shows the liability/amount you need to pay. Just write a check for record-keeping and pay directly to the agency.

Moreover, you can effectively manage your payroll account and employees by referring to this article: QuickBooks Online Standard Payroll Hub. It contains topics about setting up and run payroll, manage employees, Real Time Information (RTI), Workplace Pensions, and reports.

Please let me know if you have other concerns. I'm just around to help.

R

Rea_MAnswer

Level 10

I'm here to ensure you can make the necessary adjustment for Employment Allowance in QuickBooks, sld2012. This way, you'll be able to update the balance you owe to HMRC to £0.00.

I'd suggest turning off the Employment Allowance feature in the Payroll tab from Account and Settings. This way, it'll remove the allowance and zero out your balance. Here's how:

Go to the Account and Settings menu.
Select the Payroll tab.
Click anywhere in the Employer NI relief section.
Select the No, I don't qualify button in the Employment Allowance section.
Click Save, then Done.

After that, you'll have to resubmit your EPS filing to the HMRC. Let me guide you how.

Go to the Taxes menu.
Select Payroll Tax.
Choose the EPS and view the details.
Click Submit.

Furthermore, you're unable to enter your payments you make to the HMRC with Standard Payroll. The P32 report just shows the liability/amount you need to pay. Just write a check for record-keeping and pay directly to the agency.

Moreover, you can effectively manage your payroll account and employees by referring to this article: QuickBooks Online Standard Payroll Hub. It contains topics about setting up and run payroll, manage employees, Real Time Information (RTI), Workplace Pensions, and reports.

Please let me know if you have other concerns. I'm just around to help.

S

sld2012Author

Hiya Rea,

Why would i need to turn off Employment allowance when i would like to avail it?

L

Lisawills68

@MirriamM wrote:
I appreciate your prompt response, sld2012.

To claim and account for Employment allowance, you can create a bank deposit and account it in any income account.

Here's how:
Click the + New icon on the left menu.
Pick the Bank Deposit.
From the Account drop-down▼menu, choose an income account you want to deposit the money into.
Hit Save and close.
Take a look at this article for more information: Record and make Bank Deposits in QuickBooks Online.

I'm here to help if you need anything else, just leave a comment below. Have a fantastic day!

@MirriamMAs my Initial post stated 'Adjust Payroll Liabilities' It is not a deposit that has been received from HMRC but an adjustment that is required.

E.g.
My payroll liabilities for a month is £1800 of which £600 relates to Employer's National Insurance Contribution. The Employment Allowance can be used to offset the £600, so basically we pay HMRC just £1200. There is no actual refund or deposit just an adjustment to the liabilities is required.

As my Payroll Liabilities account shows an outstanding of £1800, i need to make an adjustment so that the account shows £1200 instead.

When i used QBDT, this is how payroll liabilities adjustments were made:
Employees > Payroll Centre > Adjust Liabilities:
Category: Amount
NIC Employer -£600 (negative)

This would then reduce the total outstanding to HMRC from £1800 to £1200.

But as the PAYE in QBO has no sub accounts and taxes and NI are all added into one account, how do i make this adjustment.

Hope this simplifies my query.

Hi

Did you sort this after please as I have a similar problem which was easy to sort on QBDT but online is a nightmare to find these things??

Thanks

Lisa

L

Lisawills68

Hi

Can someone help me please.

I need to adjust the amount of Employers Allowance allowed in this month's liabilities as I am in credit with HMRC from last year. So I need to increase the amount of deduction on the P32??

Urgent help needed please

Thanks

Lisa

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