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Community Contributor *

Adjust payroll liabilities

I set up a Roth 401(k) with the instructions from intuit. After transmitting my payroll, its not in 

Pay Liabilities section or Checking register for the transfer to be done.

How do I fix this?

Solved
Best answer 02-21-2019

Accepted Solutions
QuickBooks Team

Re: Adjust payroll liabilities

Hello there, apersson.

 

Let me join this thread and continue to help you show the Roth 401(k) payroll item on your Pay Liability screen.

 

To do this, you'll need to make sure you select Payroll Liabilities in the Roth 401(k) Payroll Setup. Here's how to do it:

  1. Go to List.
  2. Click Payroll Item List.
  3. Select the 401K Payroll Item.
  4. On the Edit payroll item, make sure the Payroll Liabilities option is selected.
  5. Click Next.
  6. Click Finish.

 

You may also want to run the Payroll Liability Balance report to know more about the payroll items assigned to a liability account. I'd be happy to show you how:

  1. Select Reports.
  2. Select Employees & Payroll.
  3. Choose Payroll Liability Balances.
  4. Set the date filter.

Here's an article that outlines a detailed information about Payroll Liability Balances report in QuickBooks Desktop.

 

If you require assistance in doing this, you can get in touch with our Care Support Team. Here's how you can get in touch with them:

  1. Go to this link https://payroll.intuit.com/support/contact/?infosrc=qs&service=16.
  2. Choose Basic Standard & Enhanced.
  3. Click Payroll.
  4. Click View Contact Info.

Be sure to keep in touch with me here should you have any additional questions or concerns. I'm here to help.

Established Community Backer ***

Re: Adjust payroll liabilities

Let's review what is really happening: "My issue is getting the payroll liability to show up weekly in the Payment History under payroll liabilities screen."

 

It Shows because of each Pay Date. It accumulates based on the Payment Schedule you told the system you need.

 

"In the payroll setup screen both the employee and the employer match are set up to come out weekly on Friday for the previous week's Liabilities (Monday thru Sunday)"

 

It's not the Previous Week's Liabilities. The Liability Clock starts ticking because of the Pay Date. Let's review the use of the terms and calendar for Payroll:

Pay Period is Mon - Sun

Pay Date is every Fri <== That is the Liability Date, because Money Happened and the means taxes are "on the clock now"

 

Then, the Payroll Item is Scheduled for when and how often it needs to be paid. Example: You pay Once a Month. That means ALL paychecks in that one money are accumulated into One Entry for Pay Liabilities, having the PERIOD of Jan, with a Due Date in Feb, for FICA typical example.

 

You don't see Weekly Deductions in Pay Liabilities, because you set it to be paid Monthly, for a Month's accumulated amount.

 

"In the payroll item listing - again both of the Employee and Employer are set up, but I think the area that is causing the issue is the Default Rate and Limit. We get paid every week. the Limit Type is only for Annual-Restart each year, Monthly-Restart each month or One Time Limit."

 

You are Confusing different things that need to track against dates or calendar functions. You deduct from me based on my participation; you match based you your participation. The Calendar Limits are Federal Statute. The Weekly Paycheck is the Financial Event. The Due Date and Cycle of the payment is the Liability Check requirement for you to Comply with or be considered late.

 

"I think the reason it worked the first time I did it was because, I chose Monthly and it was the start of the month."

 

Not really. You are confusing too many Perspectives that all happen to be Date-driven. That is Payroll. And the function for Pay Liabilities does not relate to the Paycheck Cycle, but what you Told the system you need its help Managing, to keep you on track.

 

Let's do one Extreme example:

 

The Employer knows that FUTA is .6% on the wage limit of $7k per employee; that means in the entire Calendar Year, you will never owe more than $42 per person. The Payment Rule is to pay when it reaches $500 total, or by the end of the year with the 940 form you file. You set the system for "Schedule this liability as Annual, because there are only 4 of us, and even if my staff completely turns over this year, that will still be less than $500 by year end."

 

So, Payroll is Weekly.

FUTA is Annually.

 

That means in the Payroll Center, you see one line for FUTA set for the YEAR as the PERIOD, for 2019. It Increases every Friday, when paychecks are Saved. There are not Weekly Lines for FUTA, in Payroll Center. There are Weekly Lines in the Payroll Liability Detail report and that account, which explains that Accumulated amount you see in the Helper tool of Pay Liabilities, which increases every time you issue a paycheck.

9 Comments
Moderator

Re: Adjust payroll liabilities

Hi there, @apersson,

 

Thanks for reaching out to us for assistance with your Roth 401(k).  I'd be more than willing to help you fix this.

 

You're on the right track with setting up and using the Roth 401(k) payroll item on your employee's paycheck. However, if the liability does not reflect the Pay Liabilities window, let's check if you created a liability schedule for your Roth 401(k) payments.

 

Here's how to set up a schedule:

 

1. Click the Employees menu.

2. Choose the Payroll Center.
3. Go to the Pay Liabilities tab.
4. At the bottom, select Change Payment Method under Other Activities.

5. Click the Benefit & Other Payments menu.
6. Go to Schedule payments, then select the tax liability you want to edit or schedule a payment.
7. Select Edit.

8. Verify or correct the Payment frequency.
9. Select Finish.

 

That should circumvent the problem, @apersson. You can check out this article for your reference: Set up and pay scheduled or custom (unscheduled) liabilities


Please let me know if you encounter any issues along the way. I'll be glad to help, and I'm looking forward to working with you anytime. Have a good day! 

Community Contributor *

Re: Adjust payroll liabilities

Jen,

 

I did need to schedule it, and it stated  now set up in payroll,

but it still doesn't show in the Pay Liabilities screen. 

How do I get it to show up in this section?

QuickBooks Team

Re: Adjust payroll liabilities

Hello there, apersson.

 

Let me join this thread and continue to help you show the Roth 401(k) payroll item on your Pay Liability screen.

 

To do this, you'll need to make sure you select Payroll Liabilities in the Roth 401(k) Payroll Setup. Here's how to do it:

  1. Go to List.
  2. Click Payroll Item List.
  3. Select the 401K Payroll Item.
  4. On the Edit payroll item, make sure the Payroll Liabilities option is selected.
  5. Click Next.
  6. Click Finish.

 

You may also want to run the Payroll Liability Balance report to know more about the payroll items assigned to a liability account. I'd be happy to show you how:

  1. Select Reports.
  2. Select Employees & Payroll.
  3. Choose Payroll Liability Balances.
  4. Set the date filter.

Here's an article that outlines a detailed information about Payroll Liability Balances report in QuickBooks Desktop.

 

If you require assistance in doing this, you can get in touch with our Care Support Team. Here's how you can get in touch with them:

  1. Go to this link https://payroll.intuit.com/support/contact/?infosrc=qs&service=16.
  2. Choose Basic Standard & Enhanced.
  3. Click Payroll.
  4. Click View Contact Info.

Be sure to keep in touch with me here should you have any additional questions or concerns. I'm here to help.

Community Contributor *

Re: Adjust payroll liabilities

I set up a Roth 401K for the employee, and it comes off his check, I set up the Co. match and it came out correctly the first week. 2nd week I manually had to to the Create Custom payments screen and adjust the amount to come out. it is currently set up Employee weekly on Friday and Co. match weekly on Friday, but doesn't show up in payroll liabilities screen, unless I do it manually. Is this something that can be triggered to physically show up each week after payroll is transmitted, or do I have to manually make this entry each week? 

Thank you for whoever helps.

Established Community Backer ***

Re: Adjust payroll liabilities

Let me help with this part, but I need to explain what is really going on at each step:

 

"2nd week I manually had to to the Create Custom payments screen"

 

Which is what you use to Pay that to the brokerage. This is the function that you had to use because the Liability wasn't "Scheduled." Scheduled = a Helper tool to show you how much you owe and for which Period (paycheck date-based) and how much has been accrued for you to Pay out that tax or other liability.

 

"and adjust the amount to come out."

 

This is Not the function that controls Paycheck Deductions. It's the function for you Sending on the deducted funds to the Brokerage. You would select both the employee and the employer deducted balances here, for Paying that out to the vendor name. So, this didn't do what you thought you were doing.

 

The Amounts are set either on the Edit Payroll item. Or, when something Varies, you do not set it on the Edit Payroll Item. You assign the item to each Edit Employee Payroll setup and set that person's own rate and/or limit, here. Now it is Used in the paycheck computation, and the Pay Check Details is where you see and control the Amounts. This is the step that results in the Deduction and the Match being accrued into a Liability to be paid later, by you, to the brokerage.

 

"it is currently set up Employee weekly on Friday and Co. match weekly on Friday"

 

It is set for Pay Date. If you pay Friday, then it is on those paychecks.

 

"but doesn't show up in payroll liabilities screen, unless I do it manually."

 

Remember, this is Your Payment to the Broker; not the date of Payroll but the date you Pay what you owe to the Broker, FUTA, FICA, the State. You "Schedule" a Liablity to have the QB program help you stay on track with Paying the Liability on time. Some Federal taxes are owed monthly or weekly or, as with FUTA, annually unless you reach $500 sooner.

 

And then you have the function of Payroll Schedules, which = these Salary people get paid Monthly, for the dates of 1st-end of the Prior month; this other Subset gets paid Weekly, they are Hourly, and the Paydate is every Monday for the Previous Monday - Sunday as their Work Week.

 

"or do I have to manually make this entry each week?"

 

I think you have been confused over what each Function is doing for you. Here is the overview:


Set up Payroll Items to do what you need.

Assign them to the employees to whom that applies.

Run Payroll.

Pay taxes and other Liabilities on time using the Pay Liability Functions, because you accrued this through Payroll Functions.

Community Contributor *

Re: Adjust payroll liabilities

qbteachmt,

The payroll deduction is coming off the check correctly. This is not my issue.

My issue is getting the payroll liability to show up weekly in the Payment History under payroll liabilities screen.

In the payroll setup screen both the employee and the employer match are set up to come out weekly on Friday for the previous week's Liabilities (Monday thru Sunday)

In the payroll item listing - again both of the Employee and Employer are set up, but I think the area that is causing the issue is the Default Rate and Limit. We get paid every week. the Limit Type is only for Annual-Restart each year, Monthly-Restart each month or One Time Limit.

I think the reason it worked the first time I did it was because, I chose Monthly and it was the start of the month. 

 

Established Community Backer ***

Re: Adjust payroll liabilities

Let's review what is really happening: "My issue is getting the payroll liability to show up weekly in the Payment History under payroll liabilities screen."

 

It Shows because of each Pay Date. It accumulates based on the Payment Schedule you told the system you need.

 

"In the payroll setup screen both the employee and the employer match are set up to come out weekly on Friday for the previous week's Liabilities (Monday thru Sunday)"

 

It's not the Previous Week's Liabilities. The Liability Clock starts ticking because of the Pay Date. Let's review the use of the terms and calendar for Payroll:

Pay Period is Mon - Sun

Pay Date is every Fri <== That is the Liability Date, because Money Happened and the means taxes are "on the clock now"

 

Then, the Payroll Item is Scheduled for when and how often it needs to be paid. Example: You pay Once a Month. That means ALL paychecks in that one money are accumulated into One Entry for Pay Liabilities, having the PERIOD of Jan, with a Due Date in Feb, for FICA typical example.

 

You don't see Weekly Deductions in Pay Liabilities, because you set it to be paid Monthly, for a Month's accumulated amount.

 

"In the payroll item listing - again both of the Employee and Employer are set up, but I think the area that is causing the issue is the Default Rate and Limit. We get paid every week. the Limit Type is only for Annual-Restart each year, Monthly-Restart each month or One Time Limit."

 

You are Confusing different things that need to track against dates or calendar functions. You deduct from me based on my participation; you match based you your participation. The Calendar Limits are Federal Statute. The Weekly Paycheck is the Financial Event. The Due Date and Cycle of the payment is the Liability Check requirement for you to Comply with or be considered late.

 

"I think the reason it worked the first time I did it was because, I chose Monthly and it was the start of the month."

 

Not really. You are confusing too many Perspectives that all happen to be Date-driven. That is Payroll. And the function for Pay Liabilities does not relate to the Paycheck Cycle, but what you Told the system you need its help Managing, to keep you on track.

 

Let's do one Extreme example:

 

The Employer knows that FUTA is .6% on the wage limit of $7k per employee; that means in the entire Calendar Year, you will never owe more than $42 per person. The Payment Rule is to pay when it reaches $500 total, or by the end of the year with the 940 form you file. You set the system for "Schedule this liability as Annual, because there are only 4 of us, and even if my staff completely turns over this year, that will still be less than $500 by year end."

 

So, Payroll is Weekly.

FUTA is Annually.

 

That means in the Payroll Center, you see one line for FUTA set for the YEAR as the PERIOD, for 2019. It Increases every Friday, when paychecks are Saved. There are not Weekly Lines for FUTA, in Payroll Center. There are Weekly Lines in the Payroll Liability Detail report and that account, which explains that Accumulated amount you see in the Helper tool of Pay Liabilities, which increases every time you issue a paycheck.

Community Contributor *

Re: Adjust payroll liabilities

Ok, I get what you mean now, thank you for your patience.

Established Community Backer ***

Re: Adjust payroll liabilities

Glad to help. When I first started teaching QB, the Intuit book had one chapter for Payroll, expected to take about 15 minutes. Honestly, I was thrilled to get "QB and Payroll" down to a 6-hour class :)