cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
Experienced Member

Payroll liabilities check

In Oct 1, 2018, I deducted a bankruptcy from an employee.  Between Oct 1 and Oct 15 payroll, I received notice to stop the deductions.  On the employee's next check, Oct 15, I gave his 300.00 back to him through the payroll item but as an addition instead of a deduction.   Then at end of month on 10/29, I did a liability adjustment.  I then I did a zero Liability check to clear the check out of my clear liabilities window.  But when I did this, on the payroll liability balances report, it still shows the amount of $300.00.  How do I clear this amount on the report?   Can I do I journal entry?

Thank you in advance.

4 Comments
QuickBooks Team

Re: Payroll liabilities check

Greetings, @brneyes91507.


There’s no need to create a journal entry to remove the $300 showing on the Payroll Liability Report.


When creating a liability adjustment, you have to identify whether to increase or decrease the amount owed. Since the goal is to clear out the value on the report, make sure to enter a negative number in the Amount field of the adjustment. 


Here’s how:

  1. Go to Employees at the top menu and select Payroll Taxes and Liabilities.
  2. Choose Adjust Payroll Liabilities.
  3. Enter the date for which you are adjusting in the Date box.
  4. In the Effective Date field, enter the date that you want this adjustment to affect your liability balance.
  5. Select Employee on the Adjustment is for section and the name of the employee.
  6. Under Item Name, choose the payroll item. 
  7. Enter the amount as negative on the Amount column.
  8. Hit OK.

Adjustment 1.PNG Adjustment 2.PNG

Refer to this article for more details: Adjust payroll liabilities

 

Leave a comment below if you have any questions. I'm more than happy to help. Have a pleasant day!

Experienced Member

Re: Payroll liabilities check

Ok.  I did what you said.  Step by Step.  And guess what happened.  In the pay liabilities box, listing the liabilities to be paid, the bankruptcy check to be paid popped back up.  So this did not solve my problem.  Can you tell me what to do now?   Because I have already done this and the liability check will pop back up every time.

QuickBooks Team

Re: Payroll liabilities check

Thanks for keeping me updated about the steps that you've tried, @brneyes91507.

 

When creating liability adjustments in QuickBooks Desktop, you'll need to make sure that the date range of the adjustment that you've created is accurate to the liability that needs to be removed.

 

Once verified, and you can pull up the Payroll Liability Balance report to check where does the outstanding balance is coming form.

 

To do that:

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

If you happen to see a negative balance on the report, this means that the adjustment exceeds the amount that needs to be adjusted. To fix this you'll need to delete the payment created. If it displays a positive amount, it means that the adjustment is lacking.

 

Here are great references that you can visit to learn more about payroll liabilities in QuickBooks Desktop:

If the issue persists after trying these steps, I'd suggest reaching out to our Payroll Care Team. They have the necessary tool like a remote-viewing session that can help you in fixing this matter.

 

Please keep me in the loop on how things turns out. I'm here to provide further assistance if you have further questions on this. Wishing you well.

Experienced Member

Re: Payroll liabilities check

I want to thank everyone for the help.  I had to call payroll support and get them to help me.  We created a 2nd bankruptcy payroll item used a positive number.  It fixed the problem.  Thank you.