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mikidzmimi24
Level 2

Should I set up payroll liability accounts? How is that done?

I have the Payroll module. It doesn't work. I have been online with support for hours on several different days. In the end, they cannot fix the issue and "escalate" the case, three times. I even asked about canceling my subscription and waiting a few days to re-enroll in Payroll. I was told the same issue would continue to happen. I'm hoping to at least be able to manually enter the information for each paycheck. I am very frustrated waiting on this to get fixed. Any help or ideas will be appreciated.
Solved
Best answer January 22, 2021

Best Answers
Rose-A
Moderator

Should I set up payroll liability accounts? How is that done?

Good day, mikidzmimi24.

 

Helping you manage your payroll is my priority. Let's get started.

 

If you don't have a payroll subscription, you'll need to set up a Liability Account.  Here's how:

 

  1. Click the Gear icon and choose Chart of Accounts.
  2. In the top right corner, select New.
  3. Select the Account Type and the Detail Type to specify the type of account that you want to add.
  4. Enter the name of the account in the Name field.
  5. You have the option of including information in the Description field and an amount in the Balance field. 
  6. Hit Save and Close.

 

The following is a brief video to serve as a visual reference:

AcademicJitteryCanary-size_restricted

 

Once done, you can follow the steps in this article to manually enter your payroll information: Enter payroll paychecks in QuickBooks Online. On the same link, you'll find more information on what other accounts you need to create.

 

Using the journal entry method needs the assistance of an accounting professional for the accounts you need to use. Also, your accountant can help and guide on which account to debit and credit.

 

However, if you have a payroll subscription, you can enter the details by creating a paycheck. You can run through this article for the detailed steps: Create pay checks in online payroll.

 

To give you an overview of the payroll process in QuickBooks Online, here's a write-up for your reference: Set up payroll. This will provide you with links to help you with your payroll task in the future.

 

Feel free to drop me a line if you have any other payroll or QuickBooks concerns. I'll be sure to get back to you and help you whenever I can. Keep safe and have a good one.

View solution in original post

6 Comments 6
Rose-A
Moderator

Should I set up payroll liability accounts? How is that done?

Good day, mikidzmimi24.

 

Helping you manage your payroll is my priority. Let's get started.

 

If you don't have a payroll subscription, you'll need to set up a Liability Account.  Here's how:

 

  1. Click the Gear icon and choose Chart of Accounts.
  2. In the top right corner, select New.
  3. Select the Account Type and the Detail Type to specify the type of account that you want to add.
  4. Enter the name of the account in the Name field.
  5. You have the option of including information in the Description field and an amount in the Balance field. 
  6. Hit Save and Close.

 

The following is a brief video to serve as a visual reference:

AcademicJitteryCanary-size_restricted

 

Once done, you can follow the steps in this article to manually enter your payroll information: Enter payroll paychecks in QuickBooks Online. On the same link, you'll find more information on what other accounts you need to create.

 

Using the journal entry method needs the assistance of an accounting professional for the accounts you need to use. Also, your accountant can help and guide on which account to debit and credit.

 

However, if you have a payroll subscription, you can enter the details by creating a paycheck. You can run through this article for the detailed steps: Create pay checks in online payroll.

 

To give you an overview of the payroll process in QuickBooks Online, here's a write-up for your reference: Set up payroll. This will provide you with links to help you with your payroll task in the future.

 

Feel free to drop me a line if you have any other payroll or QuickBooks concerns. I'll be sure to get back to you and help you whenever I can. Keep safe and have a good one.

View solution in original post

mikidzmimi24
Level 2

Should I set up payroll liability accounts? How is that done?

I do have a payroll subscription. But every time I try to use payroll functions I get this message:

Object Not Found: Something you're trying to use has been made inactive. Check the fields with accounts, customers, items, vendors, or employees.

I have been on the phone with 3 different people for way over an hour each time. No one seems to know how to fix this.

So I thought I would just try to set it up manually. Quickbook seems to be blocking all my attempts at working in payroll.

 

Any ideas?

 

Thanks for trying to help.

 

 

MaryLandT
Moderator

Should I set up payroll liability accounts? How is that done?

I can share why you're getting this error when using the payroll service, mikidzmimi24.

 

You need to check everything on your Chart of Accounts. An account use to track your payroll transactions is inactive, that's why you're getting this error.

 

You can review the payroll preferences and drill down the set up. Let me show you how:

  1. Go to Settings and select Payroll Settings.
  2. Select Accounting under Preferences.
  3. Once you are there, you can see which Expense and Liability accounts are affected when you create a paycheck, make a tax payment or create a deduction. 
  4. Take note of the accounts used for your payroll transactions.
  5. Select OK after choosing all your desired accounts.
  6. (Optional) You will be prompted to update Classes if the class feature is turned on.
  7. You will receive a confirmation screen that your accounting preferences have been updated.

Once done, go to your register and activate inactive accounts. Let me show you how:

  1. Go to Accounting from the left menu, then Chart of Accounts.
  2. Click the Gear icon, then mark Include inactive.
  3. Review all inactive accounts, then click Make active under Action.

I'm adding this link to learn more about this: Delete an account on your chart of accounts in QuickBooks Online.

 

Once all set, you can start running your payroll and pay taxes.

 

Let me know if you need anything else concerning payroll. I'll be around to help you.

mikidzmimi24
Level 2

Should I set up payroll liability accounts? How is that done?

If I add to the Chart of Accounts a new account named Payroll Expenses:FWH, would the Account Type be "Other Current Liabilities"?

mikidzmimi24
Level 2

Should I set up payroll liability accounts? How is that done?

I do have a subscription to Payroll. In the Chart of Accounts when I click on New, there is no "Payroll Expense" Detail Type option.

 

That should be there, correct?

Rea_M
QuickBooks Team

Should I set up payroll liability accounts? How is that done?

Hello there, @mikidzmimi24.

 

When you add a new account (i.e., named Payroll Expenses:FWH) in your Chart of Accounts, the Payroll Expenses detail type option is under the Expenses account type. Selecting the right posting account for your payroll expenses is important in QuickBooks Online (QBO). With this, I'd recommend consulting your accountant. This way, you can keep your payroll and financial data accurate.

 

In the meantime, I'm adding this article to learn more about detail types for your chart of accounts: Learn about detail types in chart of accounts. It explains how is detail type different from account type and which of the two matters more.

 

Click the Reply button below if you have other concerns about managing accounts on your Chart of Accounts in QBO. I'm just around to help. Take care always.

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