Payroll Liability

Thank you for joining the Community, MelissaW73.

I'm here to assist you in resolving this problem by clearing those payroll liabilities in QuickBooks Desktop.

We can enter a historical tax payment from the previous year to zero out the liabilities. 

Here's how:

1. Go to the Help menu and select About QuickBooks.
2. Press Ctrl + Alt + Y or Ctrl + Shift + Y to open the Setup YTD Amounts window.
3. Hit Next until you reach the Enter prior payments section.
4. Click on Create Payment.
5. Put the Payment Date and For Period Ending date accordingly (in most cases these dates will be the same).
6. In the Tax and Liabilities field, enter all the details and amounts of the liabilities.
7. Click the Accounts Affected button. Then, select Affect liability accounts but not the bank account. Selecting this option will cause the prior payment to not show up in the bank register.
8. Select Done. Then Finish to close the window.

I've added this article to learn more: Enter historical tax payments in Desktop payroll.

You can also use this link as a future reference for the year-end checklist in QuickBooks Desktop Payroll to prepare your tax returns.

If you require any additional assistance, please post again or leave a comment on this thread. I'll be happy to assist you. Take care and have a wonderful day!

Thank you! This worked perfectly. 

That's great to hear, @MelissaW73.

Let us know if you have any concerns with the account. The Community is always here to assist.

Keep safe, and have a wonderful day!