Hey there, @ElPasoClerk. Awesome to have you here in the Community.
I can help you locate the source of the incorrect amount of your Payroll Liabilities. If there are credits (negative amounts) showing in the Payroll Liability Balance report, you may have a credit/refund that hasn’t been entered yet, or you entered the deposit out of the payroll module using 'Make Deposit.' To zero out negative balances resulting from entering deposit through Make Deposit, do the following:
- In QuickBooks Desktop, navigate to the deposit made through 'Make Deposits,' copy the details, and then delete it.
- Using the same deposit date, recreate the deposit using Deposit Refund of Liabilities. For steps, see Record a payroll liability refund check. If there are unpaid liabilities (positive amounts) showing on the report, these need to be paid through Pay Scheduled Liability or Custom Liability Payment.
- If Write Check or Bill Pay was used to create payments, see Correct liability payments made in Write Checks instead of Pay Liabilities.
- To clear non-payable liability or payroll liability not paid to a third party, such as personal use of a company car or taxable group term life insurance, see Adjust payroll liabilities for more information.
- If you have to adjust payroll liability to zero out the balance, be sure to select Company Adjustment as your option, so you don’t affect employee's year-to-date payroll data.
Balances may also be due to the wrong amount entered on the Liability Check or Deposit Refund. For example: if your total payable liability for 401(k) is $ 1,000.00, but the amount you entered in the liability check is 1,100.00, the difference of $100.00 will appear on your liability balance report as (negative) -100.00 indicating you overpaid by this amount. It’s recommended that you verify the most recent past payments made with your receipts/confirmations outside of QuickBooks Desktop.
Please let me know if there's anything else I can do to be of assistance — cheers to a safe and productive week ahead.
