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Incorrect recording Tax payment for payroll as an Expense
I've paid a payroll tax for December 31, 2019. Then when I see the amount on the bank statement, I did match with the Payroll tax. It seems that it's been recorded as an expense (from Payroll liability-Federal Tax) instead of Tax payment for payroll.
Now, in the balance sheet, there's a negative amount in Payroll Liabilities.
I don't know how to fix it.
The transaction for the expense is recroded:
Dr. Cr.
Payroll Liabilities; Federal Taxes XX
Bank XX
Solved! Go to Solution.
I'll help you in fixing it, zmaleki51.
We'll have to recategorize that transaction to get rid of the negative amount. We can start by unmatching it in your Reviewed tab so that we'll be able to select the right category then match it again. I've listed the steps below:
In case you'll pay your taxes outside of QuickBooks Online Payroll (for example, by mailing a cheque to the tax agency). You can manually record the tax payment inside the program to remove the tax payment reminder.
I'll be right here to continue helping if you have further questions about tax payments or any other concerns. Feel free to tag me below.
I'll help you in fixing it, zmaleki51.
We'll have to recategorize that transaction to get rid of the negative amount. We can start by unmatching it in your Reviewed tab so that we'll be able to select the right category then match it again. I've listed the steps below:
In case you'll pay your taxes outside of QuickBooks Online Payroll (for example, by mailing a cheque to the tax agency). You can manually record the tax payment inside the program to remove the tax payment reminder.
I'll be right here to continue helping if you have further questions about tax payments or any other concerns. Feel free to tag me below.
Thanks Kent.
Actually, your comments help me to solve it. Just I had to do one more step. I had to undo the bank reconciliation for last 3 months and then delete the transaction, back to the review tab and find the right match for it.
Now the balance shows zero.
Thanks again for your help :)
Hi zmaleki51. I'm glad to hear your issue was resolved. Please don't hesitate to come back to the community. There's always someone ready to help. Have a great rest of your day.
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