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Level 2

where to find payroll liabilities, adjustment etc.

 
27 REPLIES 27
QuickBooks Team

where to find payroll liabilities, adjustment etc.

Hi Leighton19

 

Welcome to the Community

 

They can be found in accounting>chart of accounts>just search for the name of the liability/adjustment account.

The payroll creates a journal that will have these in also. If you need help with locating that just let us know which payroll you are using(standard,paysuite or advanced)

 

Thanks

Highlighted
Level 2

where to find payroll liabilities, adjustment etc.

Hi Emma,

I am new to Quickbooks online - just moved across from desktop- which I’ve been using for 20 years ! I wish the online was the same set up.

 

I am using online std payroll, 

I still can’t find it, also how do you pay your payroll liability’s - do you get a reminder Displayed. Many thanks 

 

 

Highlighted
Moderator

where to find payroll liabilities, adjustment etc.

Welcome to the QuickBooks family, @Leighton19.

 

Allow me to provide clarifications about running payroll in QuickBooks Online (QBO).

 

When liabilities need to be paid, employers must do it directly to the HMRC. Right now, a direct way to process these payments within QBO is unavailable.

 

With the help of the P32 report, you'll be able to identify the amount due. Here's how:

 

  1. On the left panel, go to Reports.
  2. Scroll down to the Payroll section.
  3. Select Employment Payment Record report.

To record the payments in the system, you can use the Expense/Expenditure option and posting it to the payroll liability account.

 

In the meantime, you can check the following article for some links about the payroll tasks in QuickBooks Online, as well as the reports:

 

Feel free to hit that Reply button if you have any other questions. Have a great day ahead.

Highlighted
Level 3

where to find payroll liabilities, adjustment etc.

Sorry to hijack the thread but I think I am having the same issues and I've been searching for the answer all week. I've just moved over from QB Desktop to QB online including payroll. In QB desktop after running a payroll it would process the payroll liabilities (after a few clicks) and then it would all be in the relevant reports (P&L for example).

Are you saying that after running payroll in QB online we then have to manually create the expenses for NI, tax, pension etc. and post to the correct accounts? That seems like a lot of extra work to me! 

Highlighted
Level 2

where to find payroll liabilities, adjustment etc.

Hi Louise,

I am glad it’s not just me, I am finding GBO so frustrating, and so much harder to find myself around, I was on the understanding it can be used exactly the same as desktop but that isn’t the case.

payroll liabilities I just can’t grasp.

when they say RUN- is this when it opens a pdf file to view ? Or am I missing something - any further help would be appreciated.

many thanks 

 

 

Highlighted
Level 3

where to find payroll liabilities, adjustment etc.

Yes from what I am understanding we have to run the P32 report once we have done the month's payroll - open the pdf - and then create expenses based on the information (which QB desktop used to do for you). Hopefully someone will confirm that this is the case. I've spent all week trying to find where the liabilities have been posted to!!

Highlighted
Level 3

where to find payroll liabilities, adjustment etc.

https://quickbooks.intuit.com/learn-support/en-uk/employees-and-payroll/re-quickbooks-online-uk-payr... 

 

This post suggests journals should be created that can be used but aren't?

Highlighted
QuickBooks Team

where to find payroll liabilities, adjustment etc.

Hello there, @Louise_Green.

 

Creating a journal entry for the expense of your payroll tax liabilities is another option to record them. When processing payroll liabilities to show on the related report depends on the payroll subscription you have. Let me discuss this with you in detail and help you from there.

 

If you're working with Advance payroll, yes, you'll have to create an expense transaction for the taxes and use the Payroll Clearing account when creating it. 

 

However, if you're subscribing to Standard payroll, you don't need to create an expense transaction for the taxes. Thus, it'll automatically be deducted from your bank account.

 

You can read this article for more details: Submit FPS to HMRC in QuickBooks Online Standard Payroll (UK).

 

Also, I'm adding these articles to help guide you and manage your payroll transactions:

 

Keep in touch if you need any more assistance with this, or there's something else I can do for you. I've got your back. Have a good day.

Highlighted
Level 3

where to find payroll liabilities, adjustment etc.

Thanks for your reply  @Mark_R 

 

Just to clarify then on the 30th April (pay date) the payroll liabilities should appear under my bank on QBO? Will the figures then show up in the Profit & Loss reports - I use these to report back my monthly figures to the Directors?

 

If not would Advanced Payroll be more suitable for me? Does this work more like the desktop payroll and give me more control? Does Advanced Payroll have the function to automatically create the liabilities?

 

Thank you

Highlighted
QuickBooks Team

where to find payroll liabilities, adjustment etc.

Hi @Louise_Green,

 

I appreciate your prompt reply. I'm here to assist with your query. 

 

QuickBooks Online Payroll (QBOP) automatically creates the FPS after your pay run. This also includes a journal entry with your payroll liabilities. Once you've already paid the liabilities to HMRC and the expense clears from your bank, you can match that expense transaction to the journal entry. 

 

As for your other questions, I suggest taking a look at this article: Product feature comparison for Payroll UK. It's a table that lists features that are available for both Standard and Advanced Payroll. You can then decide if Advanced Payroll works best for your company.

 

Additionally, you can also view this article: Benefits of QuickBooks Online Advanced Payroll. This provides you an in-depth look at the features available for this payroll service, along with a list of FAQs and their respective answers. 

 

Have other questions in mind? Post them below, and I'll get back to you. 

Highlighted
Level 3

where to find payroll liabilities, adjustment etc.

Hi @Ryan_M 

 

Thanks for your reply. 

 

I don't have a journal entry - that's what I think is causing me the confusion. I've checked the recent journals (there's only my old imported journals and the VAT I did recently), and all accounts but there aren't any payroll liabilities recorded anywhere that I can see. 

 

Can you help please? 

 

I think it is probably the Advanced version I need as the features of the Standard version I've found so far are limited compared to the Desktop Pro version, I think that's fair to say isn't it comparing the features?

 

Many thanks

 

Louise

Highlighted
Moderator

where to find payroll liabilities, adjustment etc.

Hey there, Louise_Green.

 

Allow me to step in and help you further with your payroll liabilities in QuickBooks Online.

 

As you have migrated from the desktop the Journals will not be populated automatically. You'll need to create relevant accounts and add sub-accounts in the chart of accounts. z.PNG

 

You can then deactivate the chart of accounts that related to your desktop product, they will be listed in the chart of accounts. You will then have to create the payroll journal manually after running payroll. I've included a screenshot of how the journal should be created. See the sample screenshot below.
x.PNG

 

However, using this method needs the assistance of an accounting professional for the accounts you need to use. Also, your accountant can help and guide on which account to debit and credit.

 

If you'd like to migrate to QuickBooks Online Advanced Payroll, I'd suggest getting in touch with our Payroll Support.  I'm including these articles to help guide you more about the Advanced Payroll in QuickBooks:

 

QuickBooks Online Advanced Payroll Hub

Manually setup a workplace pension scheme in QuickBooks Online Advanced Payroll

 

Also, please know that you can always visit our Help Articles page for QuickBooks Online in case you need some reference for your future tasks.

 

I've got your back if you need more help with payroll in QuickBooks. I'd be more than willing to lend you a hand.

Highlighted
Level 2

where to find payroll liabilities, adjustment etc.

Ok, thank you for the info, I am working around it now .

I now need assistances with reconcile, when paying employees, I cannot  see these payments in the bank account to reconcile against, 

can you assist with this please.

many thanks 

Highlighted
Level 3

where to find payroll liabilities, adjustment etc.

@RoseMarjorieAthanks for the help. I am getting conflicting information from various support given on here so I am very confused.

 

I need to report on payroll costs along with the rest of our expenditure and income on a monthly basis and all I had to do in the desktop version was run the appropriate P&L report.  

 

I still don't understand why the journals/liabilities aren't automatically created when payroll has been run? This seems like a massive step backwards from the desktop version of QuickBooks or am I missing something? I only had to click a few buttons before but are you now saying that I have to manually create these entries each month? QBO is supposed to be saving me time not adding extra steps. Other posts have said the journal is automatically created. 

 

I started/set up payroll from scratch from April for the new tax year so any migrated payroll data is old information. Did the set up not create the relevant accounts/sub accounts? I have accounts associated with payroll that aren't old ones. 

 

Many thanks

 

Louise

Highlighted
Moderator

where to find payroll liabilities, adjustment etc.

Let me bring clarifications to your concern, Louise_Green.

 

Agreeing to @RoseMarjorieA's response, Journal Entries from QuickBooks Desktop is not included in the migration process.

 

Here's an article that provides the list of information that doesn't convert when migrating from QuickBooks Desktop to QuickBooks Online:  What to expect when you switch from QuickBooks Desktop to QuickBooks Online.

 

If you need assistance from a live support, feel free to reach out to our QuickBooks Care Support. They can guide you through the whole process of converting your files to your new version of QuickBooks.

 

  1. Go to the Help menu at the upper right.
  2. Select Contact Us.
  3. Enter your concern.
  4. Click Let’s talk.
  5. Choose Get a callback
  6. Type in your contact info.
  7. Select Confirm my call.
    QBO Phone.PNG

Let me know if you have additional questions. Stay safe and have a great day ahead!

Highlighted
Level 3

where to find payroll liabilities, adjustment etc.

@Charies_Mthanks for your reply. 

 

I set up payroll from scratch as I didn't activate it straight away when I migrated to QBO (I used QBO without payroll for a while) - I didn't expect to import all of the same data. I don't believe I need assistance with any migration information.

 

It is simply that it isn't clear how QBO payroll (standard version although I think I need to upgrade to Advanced) processes payroll liabilities. I can't find this data anywhere and so can't report on it.

 

I have received conflicting information saying I have to manually input it (which is ridiculous) and other information saying a journal is created and so the information should be there.  

Highlighted
QuickBooks Team

where to find payroll liabilities, adjustment etc.

Hi Louise, 

 

We currently have a raised investigation where the payroll journals are not automatically posting for some customers on the Standard Payroll. 

 

I have linked your account to this investigation as an impacted customer so that you will be notified via email when the issue is resolved. 

 

The workaround in the meantime is to enter the journals manually - you can do this by creating the accounts and copying the journal entry posted above, or alternately we can move you to the Advanced payroll - please get back to us below if you would prefer this option. 

 

 Thanks 

 

Highlighted
Level 2

where to find payroll liabilities, adjustment etc.

Hi can I jump into this conversation as I am having exactly the same issues.  After spending over 2 hours with Quickbooks online support yesterday they couldn't help me.  They just kept on telling my to clear my cache and change the browser,  which I did but nothing changed.

I have used Quickbooks Desktop for the last 15+ years with no problems and the last 2 days using Online is driving me crazy, it is not simple to use and there is next to no support that actually makes any sense.  I appreciate that this may be hindered by the Covid-19 situation but still it is a joke.

Can I please be added to the list to receive any updates regarding this issue.  

Highlighted
QuickBooks Team

where to find payroll liabilities, adjustment etc.

I appreciate the complete details you've shared, @annette9.

 

Yes, you can be added to the affected user's list. To do so, I'd recommend contacting our Customer Care Team again. Just make sure to provide the investigation number INV-45460

 

Here's how to contact us:

  1. Click the Help on the top right.
  2. Select the Contact Us button
  3. Enter your concern.
  4. Click Let's talk.
  5. Choose a way to connect with us through, Start a chat or Get a callback

On the other hand, I've got these articles to help you fix errors when you convert from QuickBooks Desktop to QuickBooks Online:

Get back to us if you have other questions about running payroll in QuickBooks Online. I'm just a few clicks away.

Highlighted
Level 1

where to find payroll liabilities, adjustment etc.

Just joining in on the rant that this product has to be the worst example of what should have been a smooth transition from a desktop to an online version that I have ever seen in my life - an utterly hopeless user interface when compared to the desktop version which I have just been forced to leave.

 

I did finally get some sense from email support, so try doing this to see if it helps - the information appears to all be here for me to be able to make the payments, though Desktop was monitoring some payroll owings like SSP and income tax rebate, which hasn't crossed over to online, so I am waiting on some advice to tell me how to adjust the liabilities.

This was all so straightforward in desktop - we went to the employees section and selected 'pay liabilities'.....couldn't be simpler....it is beyond belief that a similar button or section has not been provided.

I may as well have changed to Xero like everybody told me to, though I stuck with Quickbooks because I don't like change - how wrong could I have been?!  

So - show me how to adjust the liabilities and I will be happy (Desktop had a button for this....just saying....)

Oh, and please give us a section for completing all of the payroll activities like paying our liabilities (we have to pay them every single month, you know....funny that!)

I have never spent as many hours on support lines as I have this week and I am pretty smart with all this stuff, so I can't begin to imagine how the migration has been for those who aren't quite so savvy with this technology....they must be rocking in a corner somewhere, hoping that the whole thing will just go away...

Highlighted
Level 1

where to find payroll liabilities, adjustment etc.

Can I jump on this too...!

 

Like many of you, I have been using Quickbooks Desktop for around 20 years.  Being forced to change to online wasn't ideal but I figured it would be easier than migrating to a whole new accounting system.

 

Most if it has been ok but the Advanced Payroll is a nightmare to navigate.  I've just about got my head around it after multiple calls to support.  Today I have attempted to do my first payroll liabilities and pension liabilities payments and it is nothing like we are used to.  I have tried to explain to the support rep on the phone that all I wanted to do was create the entries in Quickbooks online to show the payments I would me making to HMRC and Nest (Pensions) and they didn't seem to have a clue what I was talking about and kept telling me to call HMRC...?

 

They were continuously asking me to click on the Taxes tab despite clearly seeing that the only thing in there is VAT - no mention if payroll liabilities at all.  We went round and round in circles before I eventually just hung the phone up as I was getting nowhere. 

 

I have ended up selecting New and Cheque and putting HMRC as the payee, selecting the relevant liability accounts and putting in the figures from the P32.  Same with the Nest payment.  I'm not sure my accountant will be happy with this but I can see no other way to do it.

 

Trying to do a liability adjustment to allow for the Employment Allowance is impossible which is how I found this thread.  There is some comfort in the knowledge that I am not the only one this is happening to.

 

I would be grateful if anyone has any knowledge to share of any work around to adjust the payroll liabilities. 

 

Hopefully we'll get there.

 

All the best,

 

Steven

Highlighted
Level 3

where to find payroll liabilities, adjustment etc.

@stevenjhdmHi Steven. I think there is an issue with QuickBooks Payroll that must be affecting both the standard and advanced versions that isn't creating a liabilities journal. 

 

I'm hoping that someone at QuickBooks UK can give us an update on when we can expect this to be fixed. It is not a very good introduction into the online QuickBooks world and if they don't fix the payroll I think a lot of people will move elsewhere for payroll services at the very least. 

 

I am waiting for them to move me from standard to advanced payroll (as I think it will give me more controls) but have been told I will have to do April's payroll again and now I see that the Advanced version is also suffering the same problem with liabilities so will have even more work to do! 

 

Anyone at QuickBooks got an update on a fix please?

Highlighted
Moderator

where to find payroll liabilities, adjustment etc.

I wish I could make it better, @stevenjhdm and @Louise_Green.

 

As of the moment, @stevenjhdm, there isn't an integrated way of paying your liabilities and NEST payment. You're on the right track in paying them by writing a check for record-keeping. The actual payment must be maid directly from the HMRC

 

Meanwhile, @Louise_Green, we don't have the specific turn around time as to when the issue regarding with the payroll journals will be resolved. Rest assured that you'll be informed via email message once it is fixed.

 

Lastly, here's a few articles you can read for ideas about how the new payroll system works: QuickBooks Online Advanced Payroll Hub.

 

If you have any other concerns, know that you can always leave them in the comments. I'll be here to lend a hand.

Highlighted
Level 1

where to find payroll liabilities, adjustment etc.

So, it seems that Payroll Liabilities simply don't work the same, which is inexplicable.  There is no 'Pay Liabilities' option, so give up looking for it, as it simply isn't there.

 

I got talked through it (the guy learnt a lot from me too, as I had payroll liabilities to carry over, as I had a member of staff who received SSP just before the change, and another who had a tax rebate, so both amounts had to be carried over and he clearly had never done this before, so I ended up doing the working out!).

 

Here is what we did:

  • Go to 'Accounting/Chart of Accounts'
  • Scroll down through the list of accounts to find those titled 'Payroll Liabilities'
  • Under each of these accounts, we saw another sub-account listed, which showed what the liability was for - e.g. 'Pension' and'HMRC'
  • The column 'Quickbooks Balance' showed me what I owed in each instance
  • I then selected '+New' from the left hand menu, followed by 'Expense'
  • I put HMRC or NEST (my pension company) as the Payee
  • I selected the account which the money was to come out of as the 'Payment Account'
  • Under 'Category' I selected the same sub-accounted which I had found above
  • I returned to the chart of accounts to check that both sub-accounts now read as zero

It was fine once I knew what to do, though what a faff by comparison to how easy it is in Desktop!

 

For anyone who has liabilities to carry over, as I did, we solved this by making a journal entry which transferred the amount from the Payroll Liabilities of the imported Desktop version to the current version - I forget which way the transfer was now, though I just played with it until it worked and matched what was on the Desktop version before the transfer.  Whether this was the right thing to do or not remains to be seen, though it appears to have done the right things at my end, at least.