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.
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.
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!
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.
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:
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.
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.