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I need help with setting up the correct flow for child support payments. We are a new company.
The employee's child support is deducted via payroll and is currently going to:
Child Support (Account Type: Other Current Liabilities Detail Type: Payroll Tax Payable)
To submit the withheld money to the state child support agency, what is the correct process, so that the account where the child support is withheld is correctly offset?
For the first week, I created an expense account ("Expenses for child support Account Type: Expenses Detail Type: Payroll Expenses"), and then cut a check hitting that expense account.
I'm assuming that to be the wrong thing to do, because the "Child Support/Other Current Liabilities" account balance has not been offset by the amount of the check payment submitted to the state already.
Please give me detailed steps on what the correct process would be AND please explain how I should go about correcting the current situation, where I printed a check using an expense account I created, and have thus left the Child Support-liabilities account showing a too high balance is still being held, not yet submitted to the state.
Solved! Go to Solution.
We appreciate you visiting the Community, mlee_jmm.
I'll add information on how you account and submit child support withholdings with QuickBooks Online Payroll.
When paying a garnishment through a check, you'll select the specific account used to track the liability payments. Therefore, the balance from the liability account for child support has not been offset by the payment since you selected the expense account you created.
To get this corrected, you can delete the check payment to recreate it without having duplicate entries that can mess up your record. After that, here's how to properly create a liability check:
You can refer to this article for the detailed process: Pay your non-tax liabilities in QuickBooks.
On the other hand, QuickBooks creates default accounts automatically to record your liabilities and expenses. To customize these accounts, consider checking this material for guidance: Change your accounting preferences in QuickBooks Online Payroll.
In the future, you might want to review this resource to get valuable insights from your business and employees to better manage your finances: Run payroll reports.
Keep us posted if you have additional questions when tracking child support or other related concerns in QuickBooks Online Payroll. We'll be around to help.
We appreciate you visiting the Community, mlee_jmm.
I'll add information on how you account and submit child support withholdings with QuickBooks Online Payroll.
When paying a garnishment through a check, you'll select the specific account used to track the liability payments. Therefore, the balance from the liability account for child support has not been offset by the payment since you selected the expense account you created.
To get this corrected, you can delete the check payment to recreate it without having duplicate entries that can mess up your record. After that, here's how to properly create a liability check:
You can refer to this article for the detailed process: Pay your non-tax liabilities in QuickBooks.
On the other hand, QuickBooks creates default accounts automatically to record your liabilities and expenses. To customize these accounts, consider checking this material for guidance: Change your accounting preferences in QuickBooks Online Payroll.
In the future, you might want to review this resource to get valuable insights from your business and employees to better manage your finances: Run payroll reports.
Keep us posted if you have additional questions when tracking child support or other related concerns in QuickBooks Online Payroll. We'll be around to help.
I have several employees with child support garnishments. Most are paid to the same agency. Should I set each one up with a separate deduction code for each employee? Is this how I would generate a check to pay the liability and have identifiers for each employee referenced on the check? I am a new Quick Book user and trying to set-up Diamond Enterprise 24.
Thank you
Thank you for your prompt response on the thread, @CCourson. Let me share more information about setting up the child support garnishment.
Yes, you're correct. We'll need to set up the child support for each of your employees, as they are giving different amounts. In paying the liabilities, we can create a single check with the total amount of all child support instead of sending different checks to the agency since the garnishment will only be recorded in QuickBooks Desktop.
First, let's set up the payroll item:
To add the Garnishment to the employee:
Moreover, if you want to set up a payroll schedule, refer to this article: Set up and manage payroll schedules.
If you still have questions, don't hesitate to reply to this thread or create a new one. Have a great day.
Thank you for the response. But I need a little more clarification. Let's say I have two or more employees with child support that is payable to the State of Arizona. If I set them up with the same deduction code of Child Support when the check is generated for the State of Arizona will it show the amounts for each employee separately with their individual case numbers? If so, where does it pull that information from? Or should I set up separate codes, such as Child Support - Smith, Child Support-Jones, etc.? Then would I be able to generate one check to the State with all the info. for each person listed separately? Thank you.
I'll provide the necessary information to clarify your inquiry about setting up Child Support withholdings in QuickBooks Desktop (QBDT), @CCourson.
When you set up the same deduction code for all your employees, the amounts for each employee with their case numbers won't show when you generate a check for the state, as you only utilized one payroll item. Thus, you'll have to create them separately with different liability accounts for each employee to pull up this information and accurate payroll liabilities tracking.
I'll show you how:
Afterward, follow the steps provided by my colleague, JoanaC, to add the new payroll items to their designated employee profile.
Furthermore, once you're ready to pay your state agency, please refer to this reference for guidance: Pay your non-tax liabilities in QuickBooks.
In addition, there are different payroll reports you'd like to run to have a clear picture of your employee info, wages, taxes, deductions, and business finances.
These clarifying details will point you to the best option for managing your employee's child support withholdings in the program. If you require additional assistance, don't hesitate to comment back. We've got your back, @CCourson.
I also have a child support deduction but the State of Florida allows a $5.00 fee along with
each deduction as income to our business as income. I have the PR deduction set up correctly for the remittance to the State but I do not know how to set up the $5.00 as income.
Hello there, Chipster12.
Thanks for providing the information about your concern. Allow me to share the details regarding your situation.
In QuickBooks Online, we are unable to choose an income account for PR deductions (Garnishment), even though it was allowed in your state. You can directly contact our support team to request an adjustment, and they will assist you in setting it up correctly for the future.
I will provide you with the steps on how to contact support.
Here's how:
Keep us informed if you have any further questions regarding child support or other related matters in QuickBooks Online Payroll. We're here to assist you.
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