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QuickBooks Standard Payroll Journals and Paying Liabilities

SOLVEDby QuickBooks17Updated over 1 year ago

When you run payroll in QuickBooks Standard payroll, journal entries are created for each employee and the liabilities which you have to pay to HMRC. The journals created affect your liability balances.

The account Payroll Liabilities in QuickBooks has several sub-accounts to this account including HMRC, Pension, and Other Deductions.

  • HMRC account will have Income-tax, Employer National Insurance, Employee National Insurance, and Employee Deductions (from employee’s gross wage)
  • Pension account will have Employer and Employee Pension Deductions
  • Other Deductions account will have other miscellaneous deductions

You can view the amounts which are owed to HMRC from the P32 report by going to Reports, then Employment Payment Record (P32).

NOTE: The Employment Payment Record (P32) will show how your Employer National Insurance Contributions are reduced by the Employment Allowance if you are eligible for Employment Allowance.

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