payroll liability checks debit & credit same bank account

Hello there, @lu131op3.

I am here to share some insights about creating a payroll liability check in QuickBooks Desktop (QBDT).

It is important to note that QBDT will only rely on what data was sent by your bank or financial institution. You can check your bank statement to compare them.

If it is money out and downloaded as a debit entry, not a credit, you'll need to exclude or ignore it and then manually clear the liability check in the chart of accounts.

In case you want to match these entries, you can manually upload the correct entries after excluding them.

Furthermore, I am adding this helpful article as your reference in filing your payroll taxes in QuickBooks Desktop: E-file and e-pay state forms and taxes in QuickBooks Desktop Payroll Enhanced.

Please don't hesitate to return to this post if you have other concerns about payroll liability checks. I'll be here to lend a hand.

@lu131op3 

"We have liability checks deducted from employees payroll. Payroll is funded out of our general funds account in QuickBooks. When I process the liability check, QB posts it as a debit."

I don't fully understand your question either.  You don't have liability checks deducted from employees payroll.  You first need to increase the liability through the payroll deduction (credit), then you issue the check and that decreases the liability (debit).  I have no idea what you mean by "I have to deposit it back into the same bank account or I don't have a corresponding deposit to balance against".  The liability is funded by the payroll deduction from employee wages or your company expense with the company cash.  Is that the "deposit" you're referring to?

Sorry. Apparently I’ve not been clear on the issue.  The deductions I refer to are NOT taxes.

I work for a union.  The staff in the office work under the same contract as the members.  The members work for outside signatory contractors.  I work for the union itself.

Our contract requires certain deductions be taken from employee wages (membership dues, scholarship fund, etc…)  The Quickbooks desktop payroll module debits our general operating bank account to fund payroll.  So liability checks are generated and posted in QB on that bank account.  However, one of our deductions (collected from us AND all other contractors) is deposited into the same account at the bank.  No problem when the funds come from outside sources (other contractors).  But when I do MY payroll the module creates a liability check. Since the money is already IN the general operating account, I’d like a way to just leave it there.  But how do I process (pay) the liability check without actually printing it and re-depositing it???  I can’t void it.  I can’t delete it.  I can’t ignore it. 

Sorry. Apparently I’ve not been clear on the issue.  The deductions I refer to are NOT taxes.

I work for a union.  The staff in the office work under the same contract as the members.  The members work for outside signatory contractors.  I work for the union itself.

Our contract requires certain deductions be taken from employee wages (membership dues, scholarship fund, etc…)  The Quickbooks desktop payroll module debits our general operating bank account to fund payroll.  So liability checks are generated and posted in QB on that bank account.  However, one of our deductions (collected from us AND all other contractors) is deposited into the same account at the bank.  No problem when the funds come from outside sources (other contractors).  But when I do MY payroll the module creates a liability check. Since the money is already IN the general operating account, I’d like a way to just leave it there.  But how do I process (pay) the liability check without actually printing it and re-depositing it???  I can’t void it.  I can’t delete it.  I can’t ignore it. 

Sorry. Apparently I’ve not been clear on the issue.  The deductions I refer to are NOT taxes.

I work for a union.  The staff in the office work under the same contract as the members.  The members work for outside signatory contractors.  I work for the union itself.

Our contract requires certain deductions be taken from employee wages (membership dues, scholarship fund, etc…)  The Quickbooks desktop payroll module debits our general operating bank account to fund payroll.  So liability checks are generated and posted in QB on that bank account.  However, one of our deductions (collected from us AND all other contractors) is deposited into the same account at the bank.  No problem when the funds come from outside sources (other contractors).  But when I do MY payroll the module creates a liability check. Since the money is already IN the general operating account, I’d like a way to just leave it there.  But how do I process (pay) the liability check without actually printing it and re-depositing it???  I can’t void it.  I can’t delete it.  I can’t ignore it. 

I do not understand "clear the liability check in the chart of accounts."

The issue is I am BOTH the payer (the employer) AND the payee (the receiving entity).  And the funds are drawn and deposited in and out of the SAME bank account.

I cannot just ignore the liability.  If I print it on blank paper and throw it away (to satisfy QBGT) so as to clear it from the liability list, then I can't reconcile it because it will never clear my BANK.  If I try to delete it, it just pops back up in the liability list.

Thanks for getting back in this thread, @lu131op3. I'll share some information on how you can clear out the liabilities that keep showing in your QuickBooks Desktop (QBDT) account.

To clear the liabilities from your liabilities list, you'll want to enter the payment using the Enter Prior Payments option in the YTD Adjustment window. To guide you further, please follow the steps below:

1. From the Help menu, choose About QuickBooks.
   
   
2. Press Ctrl + Alt + Y or Ctrl + Shift + Y to open the Setup YTD Amounts window.
3. Select Next until you reach the Enter Prior Payments section.
4. In the Enter Prior Payments window, select Create Payment.
5. Enter the Payment Date and For Period Ending date accordingly (in many cases, these dates will be the same).
6. Under Item Name, select the drop-down arrow. And choose the item you need to create a prior payment for.
7. Select the Accounts Affected... button and ensure to choose the Do not affect accounts option. The adjustment will only change the year-to-date amounts on your payroll reports.
   
   
8. Once done, you may continue this process until you've completed all payments. Then, click Done and Finish to close the window.

You can refer to this article for more detailed information: Fix overdue or red scheduled liabilities in QuickBooks Desktop.

Furthermore, you can check out this guide so you can keep track of your payroll tax payments and forms made in your payroll account: View your previously filed tax forms and payments.

We'll always be available in this thread if you require additional assistance managing your payroll data. Feel free to let us know in the comments below. Keep safe.

@lu131op3 

"The issue is I am BOTH the payer (the employer) AND the payee (the receiving entity). And the funds are drawn and deposited in and out of the SAME bank account."

Does the money actually leave the bank account with a separate withdrawal and deposit?  If so, pay the liability with a check and assign 'EFT' or some other nonspecific check number to the check.  Uncheck the 'Print Later' box so you don't need to print it.  Then, create a deposit and assign the appropriate income account to the deposit.  You then have the expense paid in wages and the corresponding amount deposited as income.  Those two transactions offset and you can clear them against each other the next time you reconcile the bank account.

If there's not an actual withdrawal and deposit, you can clear the liability with a journal entry - debit the liability account and credit the income account.  That's it.