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Level 1

S-Corp Medical Insurance set-up as directed on this site leaves ALL of the insurance as Payroll Liability on the balance sheet

HI,

 

My accountant retired and I have to produce my books for someone that knows nothing about my taxes, thus, I want to get QB to report accurately.  The company pays 100% of all insurance expenses.  Share holder pays taxes on it.

 

I set up S-Corp medical payments as directed on this site with the same insurance plan given to everyone including 2% share holders.  When I pull the balance sheet, it puts the insurance premiums as "Payroll Liability".  Insurance payments are an expenses and paid once annually at the beginning of the year.

 

Sadly, I do not know how I need to debt/credit/adjust the Payroll liability to get it to show zero (assuming all taxes have been paid).  I am not certain of the approach.  ALL of the articles share how to set this up for the W2s.  None of them indicate HOW to manage the insurance payments and align to QB.

 

Can anyone help?  

3 Comments
QuickBooks Team

Re: S-Corp Medical Insurance set-up as directed on this site leaves ALL of the insurance as Payro...

Hi there, amoskovitz.

 

If you've already paid the medical payments outside of QuickBooks, then you can record the payroll liability as a check. This process will offset the amount in the balance sheet.

 

Here are the steps:

  1. Click the Plus (+) icon located in the upper right-hand corner.
  2. Under Vendors, click Check.
  3. Choose the vendor name from the Payee drop-down menu.
  4. Select the bank account, and select the Payment Date.
  5. Under the Category details select the payroll liability account.
  6. Enter the amount, and click Save and Close.

You can also check this article for more information: Create a Payroll Liability Check.

 

I'll be around if you need more help with QuickBooks. Thanks.

Level 1

Re: S-Corp Medical Insurance set-up as directed on this site leaves ALL of the insurance as Payro...

I have the desktop version - but you gave me enough to try and change this my version!  THANK YOU!

Moderator

Re: S-Corp Medical Insurance set-up as directed on this site leaves ALL of the insurance as Payro...

Hello amoskovitz,


Thanks for coming back with clarification.

 

The steps provided above are for QuickBooks Online Payroll. The idea of creating a payroll liability check to zero out the payroll liability in the Balance Sheet is right. 

 

Here's how to do it:

  1. Select the Employee menu.
  2. Choose Payroll Center.
  3. In the Payroll Center window, go to the Pay Liabilities tab. At the bottom, from the Other Activities list, click Create Custom Payments.
  4. In the Select Date Range for Liabilities window, set the date range to include all checks created in Write Checks and click on OK.
  5. Select the appropriate payroll item by clicking the check mark column next to the item, and enter the correct amounts in the Amount to pay column.
  6. Click on Save & Close.

Run the Balance Sheet report again. You'll see that this S-Corp Medical Insurance is now zero out in your Payroll Liability account.

 

If you have any questions, please let us know. 

 

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