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lrgsmth
Level 1

I have a new client that has a positive amount in payroll clearing account - how do I fix this. What is the correct journal entry?

 
2 Comments 2
SherrySel
Level 2

I have a new client that has a positive amount in payroll clearing account - how do I fix this. What is the correct journal entry?

To help you with that specifically, I would need to know more about the entries in the Payroll Clearing Account. Generally if using Quickbooks Payroll - when the payroll is created  the expense is recorded and the clearing account is credited. Then when the checks and payroll tax deposits come through checking - the checking is credited and the Payroll clearing is Debited. 

It is possible that these items have not been expensed and that is why they remain in the Clearing Account - or they have not cleared the checking account yet.

lrgsmth
Level 1

I have a new client that has a positive amount in payroll clearing account - how do I fix this. What is the correct journal entry?

Thank you for your response- it looks like in early 2020 they did not create the "check" to offset the clearing. Thus the clearing amount has stayed on the books. Bank Reqs were ok during this period, so I don't want to go back and create a check for this amount. Not sure though. 

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