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Level 1

How to delete an item under "pay scheduled liabilities"

My liability is negative so QB won't create a negative check for me to zero out.  Any ideas?

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QuickBooks Team

How to delete an item under "pay scheduled liabilities"

Hello there, @KS59803.

 

You don't need to create a negative check to zero out the liability, you can simply apply the payroll liability over-payment as a credit to your next liability. I'm here to help guide how.

 

First, negative liability happens when you have an overpayment made on your previous taxes or payroll liabilities, if you have a liability overpayment, you can simply apply it as a credit to a payroll tax account.

 

To apply a tax credit, you can follow these steps:

 

  1. Create a liability check.
  2. Select the Expenses tab. And select the account where you want to apply the credit.
  3. Enter the amount of the credit (only up to the amount of the check) as a negative figure in the Amount field.
  4. Enter an explanation of the transaction in the memo field.
  5. Select the Recalculate button to lower the amount of the check by the amount of the credit. If there is a credit balance remaining, you can apply it to the next period by repeating steps 1 through 4.

For further details, you can check this article: Apply your payroll liability overpayment as a credit.

 

Let me know directly if you have any other payroll or QuickBooks questions. I'm just a post away to help you!

Highlighted
Level 1

How to delete an item under "pay scheduled liabilities"

Please don't use this method if you are experiencing a legitimate software glitch (i.e., you always use the "Pay Payroll Liabilities" function, and never mess around with journal entries or writing checks directly to handle anything related to payroll liabilities).  The method described above *will* in fact affect both the payroll liability and the expenses.  The best way to figure out if you're having a glitch or not is to use the Payroll Liabilities Report for the year you're looking at and make sure that it shows $0 balances due, all paid.  If it does, you're looking at a software glitch if you're seeing "Past Due" liabilities that you know aren't past due, and using this fix will not fix anything, it will make the "Past Due" liabilities disappear from the Pay Payroll Liabilities window, but it will also mess up your payroll liabilities for that period, and your expenses for whatever period you cut the $0 check in.  I am still looking for an actual fix for this.

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