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Experienced Member

liabilities not balanced

Have a unique problem.  I deduct from employees paycheck each period an amount for their SIMPLE retirement account, which I fund monthly.  An employee lost a check at the end of February.  I reprinted the check recently, and at this time my liabilities show a delta of -74.16, which is the amount of his SIMPLE fund contribution on the check that was lost.  I assume that I have sent that amount too much to the SIMPLE, and suggest that the cure is to send that much less this month to make up for it, to bring my account and the employee's contribution back into synch.  Does that seem like the correct resolution?

3 Comments
QuickBooks Team

Re: liabilities not balanced

Thanks for posting here in the Community, @kylecallahan

 

I appreciate you providing a screenshot for me to get a better picture of your concern. 

 

The reprinted paycheck is likely damaged and this adjusts your payroll liability balances. This maybe the reason you're seeing a -74.16 difference. 

 

To help fix this, you'll first need to open the paycheck detail to see if there's an "adjusted' word beside the Employee Summary section. This is to ensure your contribution has not been adjusted. Please see the screenshot below for your reference. 

 

EmployeeSummaryAdjusted.PNG

 

Then, you can also run the Payroll Liability Balances report to determine if all the tax payments have been made, especially last February. Here's how: 

  1. Go to the Reports menu at the top. 
  2. Select Employees & Payroll
  3. Choose Payroll Liability BalancesPayrollLiabilityBalancesReport.PNG
  4. Check the payments made for the SIMPLE Retirement payroll tax. 
  5. If there 0.00 amounts, this means there are no discrepancies to resolve. If there is -74.16 showing up on the report, double-click the link.  
  6. Click each paycheck associated with the transaction. 

 

If this is a manual check, you'll have to delete and recreate it. Before performing this, you can create a backup of your company file to further protect your data.  

 

If this is a direct deposit (DD) check, you'll need to create a DD offset payroll item. Then, add it to the affected paycheck and clear its balance on your Payroll Liability account. For detailed steps, you can check out this helpful article: DD Offset Payroll Item

 

The steps above will help get your payroll liabilities balanced, @kylecallahan

 

I'm here anytime you have other concerns. Have a good one.

Experienced Member

Re: liabilities not balanced

Yes - this shows up in February and continues as a negative balance thru today.  There’s no cleared check on Feb 27 for Thomas.  So I deleted it and recut the check.  I suspect all of the liabilities will be wrong now so I may have a bigger problem.  Darned employees.  What happened is I made the payment to Vanguard funds for the simple based on an assumed amount that was in my QB file.   but then realizing the check was missing in May and I deleted the original check from February and cut another in late May.  So I paid the deduction in February, and I suspect also in late may when I cut another copy of the check.  So I am not sure how to balance this out.  Do I NOT make a $74.16 payment to Vanguard this month for Thomas having paid it twice, and thus  it will it then balance out?

 

I really appreciate your insight.

 

Kyle Callahan

QuickBooks Team

Re: liabilities not balanced

Hi kylecallahan,

 

You can create a liability adjustment for your Simple IRA to correct your liability report. Let me walk you through how.

  1. In your Payroll Liability Balances report, double click the Simple IRA Emp. amount (-74.16).
  2. Get the employee name, paycheck date, and the amount. Then, close the report.
  3. Click Employees, Payroll Taxes and Liabilities, and then Adjust Payroll Liabilities.
  4. Change the Date and Effective Date to the employee's paycheck date.
  5. Adjustment is for: Employee. Select the employee's name.
  6. Under Taxes and Liabilities, Item Name column, select Simple IRA Emp. and enter the amount. You can enter a memo in the Memo field.
  7. Click Accounts Affected and choose Do not affect accounts so it won't affect your bank account.
  8. Click OK in the Accounts Affected window.
  9. Click OK.

You can refer to this article for details: Adjust payroll liabilities.

 

Once done, pull up your Payroll Liability Balances report again.

 

I've added this article for future reference: Set up your Federal Forms 940, 941 and 944 for e-file in QuickBooks Desktop.

 

If you have other concerns, please let me know. I'd be happy to assist you.

 

liabadjust.JPG