Credit card tips through Square import to QBO as a liability. I ran payroll core and paid tips but liability remains. What is the journal entry to remove the liability?

Thanks for posting in the Community, @jacquijax. 

It looks like you've imported credit card tips from Square based on your scenario. However, recording the tips from your customer sales is different from your employees' side. I want to make sure we're on the same page. Thus, how did you record the payment of tips using the Payroll Core version? This way, I can provide an accurate solution to your concern. 

Just click the Reply button below to add some details. I'll keep an eye on your response, so I can assist you further. 

Thank you. I selected a pay type called “Payroll Tips”, so the employee paychecks are showing regular wages (for their hourly pay) and payroll tips. 

Hello,

I am also interested in this answer based on @jacquijax 's response.

Hello there, yurinaito.

You'll want to use a check or an expense when paying your Credit Card in QuickBooks Online (QBO).

As Check 

1. Go to the + New button.
2. Choose Check. 
3. Select a bank account to use to reimburse the personal funds.
4. In the category column, select partner's equity or owner's equity.
5. Enter the amount to reimburse.
6. Click Save and close.

As an Expense

1. Select + New.
2. Choose Expense or Add expense.
3. Pick a bank account to use to reimburse the personal funds.
4. In the category column, select partner's equity or owner's equity.
5. Enter the amount of the reimbursement.
6. Click Save and close.

I'd also like to know how you record the tips in QBO. This will help me identify the reasons why there is still a liability after paying the tips.

Here's an article about the newest payroll service updates and their features:

• Newest payroll services
• Tax feature updates with QuickBooks Online Payroll Core.

I'm also sharing our page about employees and payroll taxes in case you need some additional reference.

The Community is always open if you have other questions. I'll be around to help. Wishing you a great day ahead!

What is the answer to this? Square payroll already paid my employees their credit card tips but they are showing as a liability on my balance sheet. How do I get rid of it? I use Quickbooks desktop.

Thanks for reaching out to the Community, Mocha11. I'd be more than happy to guide you through deleting these tips.
 

They'll have to be removed individually. Once you delete each of them, the liability will no longer appear on your balance sheet.
 

Here's how it's done:

1. Locate and open the paycheck.
2. Access your Edit menu, then choose Delete Paycheck.
3. A "Are you sure you want to delete this paycheck?" message will display. Select OK.

You'll additionally be able to find many detailed resources about using QuickBooks in our help article archives.
 

If there's any other questions, I'm just a post away. Have a great day!