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Intuit
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Set up and pay scheduled or custom (unscheduled) liabilities

In QuickBooks Desktop, you have the option to set up a scheduled payment or liability and pay it as it’s due or pay an unscheduled liability anytime. This article provides instructions on how to set up scheduled liabilities, pay an unscheduled liability, and resolve certain errors.

Reminders
  • QuickBooks Desktop must be updated to the latest release.
  • Make sure you also have the latest payroll tax table.
  • You must be in Single-user Mode.
  • You can set up a schedule for payroll liabilities that are calculated on your employees' paychecks and are regularly paid in QuickBooks Desktop.
  • For QuickBooks Desktop Payroll Assisted Service, Intuit debits and pays your payroll tax liabilities directly to the agencies. For taxes paid by Intuit on your behalf, see Assisted Quick Tax Guide. Note that Intuit doesn't pay your liabilities for employee benefits.

 

  1. Go to the Employees menu, then select Payroll Center.
  2. Select the Pay Liabilities tab.
  3. At the bottom, under Other Activities, select Change Payment Method.
  4. Go to Schedule payments, then select the tax liability you want to edit or schedule a payment for.
  5. Select Edit.
  6. Enter the appropriate information.
    For QuickBooks Desktop Payroll Enhanced users:
    • If the payment frequency option you need is unavailable in the drop-down list, mark the Let me use a different payment frequency checkbox. Select Next, then set up a custom payment schedule.
    • The IRS doesn't offer a weekly liability payment schedule. If you're required to make a payment several days after running payroll, the IRS considers it a semiweekly basis. Just choose After Each Payroll (Semiweekly) from the Payment (deposit) frequency drop-down to set it up.
  7. Select Finish, then Finish Later.

Once you’ve finished setting up your liability schedule, you can now see your upcoming, due, and overdue liabilities under the Pay Taxes & Other Liabilities section. To view:

  1. Go to the Employees menu, then select Payroll Center.
  2. Select the Pay Liabilities tab.
Payroll Liability Reminder on Home Screen

If you're using QuickBooks Desktop 2018 or later, a red reminder will now appear on the home screen under Pay Liabilities. To know more, see What's new in QuickBooks Desktop for Windows 2018.

  1. Go to the Employees menu, then select Payroll Center.
  2. Select the Pay Liabilities tab.
  3. At the bottom, under Other Activities, select Create Custom Payments.
  4. In the Select Date Range for Liabilities window, select the appropriate date range, then OK.

    Note: Liabilities are accrued on the date the paycheck is issued, not on the pay period of the check.

  5. Mark the To be printed checkbox if you plan to print the liability check.
  6. Select the bank account and the date you want to appear on the liability check.
  7. Choose either Review your liability check to enter expenses/penalties or Create a liability check without reviewing.
  8. Select the payroll item you want to pay, then select Create. Note that if you select multiple payroll items, the items paid to the same agency are combined into 1 liability check while items paid to separate agencies produce multiple liability checks. Make sure the check amount and item list under Payroll Liabilities are accurate.
  9. If you choose Review your liability check to enter expenses/penalties in step 7, a liability check appears. If you didn’t, you can view the liability check in the check register.
  10. Make sure the date and amounts are correct. Select Print if you want to print the check.
  11. Go to the Expenses tab if you want to enter expenses/penalties on the liability check.
  12. From the Account field drop-down, select the expense account you use to track payroll expenses and penalties, then enter the amount in the Amount column.
  13. Select Recalculate. Make sure the amount on the liability check now includes the expense or penalty.
  14. If you pay liabilities by Electronic Funds Transfer (EFT), unmark the To Be Printed checkbox and type EFT in the No. (check number) field of the liability check.
  15. Select Save & Close.

Before you can pay your payroll taxes and other liabilities, you must have a payee name associated with each liability. Usually the payees are tax agencies, but they may also be a bank or an insurance company.

To assign a payee name:

  1. Go to the Lists menu, then select Payroll Item List.
  2. Double-click on the appropriate payroll item.
  3. Select Next until you reach the Agency for company-paid liability window.
  4. From the Enter name of agency to which liability is paid drop-down, choose the appropriate agency (payee).
  5. Select Finish.
  6. Repeat steps 2 to 5 for each liability you want to assign a payee name.

  1. Go to the Employees menu, then select Payroll Center.
  2. Select the Pay Liabilities tab.
  3. In the Pay Taxes & Other Liabilities section, mark the liabilities you want to pay, then select View/Pay button.
  4. Make sure the date and amounts are correct. Select Print if you want to print the check.

    Note: Liabilities are accrued on the date the paycheck is issued, not on the pay period of the check.

  5. Go to the Expenses tab if you want to enter expenses/penalties on the liability check.
  6. From the Account field drop-down, select the expense account you use to track payroll expenses and penalties, then enter the amount in the Amount column.
  7. Select Recalculate. Make sure the amount on the liability check now includes the expense or penalty.
  8. If you pay liabilities by Electronic Funds Transfer (EFT), unmark the To Be Printed checkbox and type EFT in the No. (check number) field of the liability check.
  9. Select Save & Next or Save & Close.
  10. The Payroll Liability Payment Summary window opens. You can review the payments you scheduled, print a copy of the summary, and/or print checks.

E-pay is available for certain agencies with QuickBooks Desktop Payroll Enhanced. See E-pay your tax liability payments in QuickBooks Desktop to know how to e-pay your payroll tax liabilities.

  • QuickBooks Desktop is locked up or not responding after selecting View/Pay for a payroll liability check.

    The Payroll Liability Check window is open but not visible due to the position of the window — out of the viewable area of the display which can be caused by dragging the window there by accident. To fix this:

    1. Close, then reopen QuickBooks Desktop.
    2. Go to the Employees menu, then select Payroll Center.
    3. Go to the Payroll Liabilities tab, then highlight the appropriate liability.
    4. Press and hold the Shift key on your keyboard, then select View/Pay. You can now see the Payroll Liability Check window.
  • Scheduled liabilities show as overdue or in red.

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