Question

Workers Comp Liability

Forum|Forum|5 years ago
January 6, 2021
1 reply
3 views

I originally didn't setup my Workers Comp manually and after one payroll I have an amount in payroll Liabilities. I pay this monthly online with the insurance company and just need to track the payroll by code and do not need to accrue liabilities. I have now gone through the set up manually process but need to know how to get the amount out of liabilities.

QuickBooks Desktop Payroll

LieraMarie_A

Level 8

I have all the steps you'll need to clear your payroll liabilities, @CindyP3.

You may enter prior payments and choose the Affect liability accounts but not the bank account option. Selecting this option will cause the prior payment to not have an effect on your bank register.

Here's how:

From the Help menu, choose About QuickBooks.
Press Ctrl + Alt + Y or Ctrl + Shift + Y to open the Setup YTD Amounts window.
Select Next until you reach the Enter prior payments section.
In the Enter Prior Payments window, select Create Payment.
Enter the Payment Date and For Period Ending date accordingly (in many cases these dates will be the same).
In the Taxes and Liabilities field, choose the payroll tax item that you've already paid and want to record in QuickBooks Desktop. And enter the amount. You can add a memo to remind you what the payment is for.
Select the Accounts Affected and choose Affect liability accounts but not the bank account. Then, click OK.
After you have completed your first payment, continue to the next by selecting Next Payment. Continue this process until you have completed all payments. Then, select Done to save your work.
Select Finish to close the window.

These instructions are available from our guide on entering historical tax payments in Desktop payroll. Doing this will clear the amounts in the Payroll Liabilities report.

Additionally, here are some resources for more insights about calculating your total Workers' Compensation premiums:

Please let me know if there's anything else I can do to be of assistance. I'm determined to ensure this payroll liability issue gets straightened out. Have a great day.

C

CindyP3Author

I need to make sure you completely understand my situation before I try your solution. I just started doing payroll in January and have completed one payroll. Therefore I have not paid workers comp prior to this and that is what I want to remove from liabilities.

I do not need to pay workers compensation from payroll. All I was trying to do was track my workers comp by code so that I could go online to the insurance web site and pay by workers comp. I have other discounts and charges that apply to my workers comp liability and can not pay it through payroll.

All I really want to do is remove the amount showing in payroll liabilities and track my wages by wc code and not record any more liability for wc.

If your solution will work in this case I will be thankful. I just didn't want to try it and it make the situation worse.

C

CindyP3Author

I have since figured out how to remove the liability by going in on each paycheck and changing the employee wc code to exempt. I just need to know if I can track wc by code without creating any liabilities. If not I will have to do it by hand each week.

Let me know if you have a solution for tracking without recording liability.

Thanks

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