Negative Liabilities Accounts

mreif2727 · ‎February 10, 2021

Hello,

My payroll tax liabilities and long term loan accounts are negative. We use a third party payroll provider that will deduct the net amount from our account each week. We then go in and split it between the correct tax accounts. This however has created negative amount in these and other types of accounts such as an inter transfer account used to transfer funds between a parent company. How are we to resolve this?

ZackE · ‎February 10, 2021

Thanks for joining the Community, mreif2727.

To determine how you can go about fixing these negative amounts, I'd recommend working with an accounting professional. If you're in need of one, there's an awesome tool on our website called Find an Accountant. All ProAdvisors listed there are QuickBooks-certified and able to provide helpful insights for driving your business's success.

Here's how it works:

Go to our Find an Accountant page.
In the Find an expert in section, choose what you're looking for, then use your search field to enter a City or ZIP code.
Hit Search.
Browse through the results and find one that works best for your business. You can click on each ProAdvisor's profile to learn more information about them.

Once you've found an accounting professional, they can be contacted through their Send a message form:

Use your available text box to introduce yourself. Be sure to include details about the services you're looking for.
Enter the appropriate info in the Your name, Your email, and Your phone number (optional) fields.
Select Send message.

You can also find many useful resources about using QuickBooks in our help article archives.

I'll be here to assist if there's any additional questions. Have a wonderful day!

mreif2727 · ‎February 10, 2021

I want to know this as well. Does this just have to be done with a journal entry each month to the cash account? I do not want to sign up for ProAdvisor.

MaryLandT · ‎February 10, 2021

Thanks for joining this thread, mreif2727.

Let me share some insights to ensure those journal entries are entered correctly. In QuickBooks Online, you can make journal entries to record paychecks created outside the system.

Check out this link for instructions and detailed information: Manually enter payroll paychecks in QuickBooks Online. It guides you on how to debit and credit your accounts.

Also, you don't need to sign up for ProAdvisor. You can look for an accountant near your place. Just visit this link to find one: https://quickbooks.intuit.com/find-an-accountant/?region=us.

Let me know if you need additional information by commenting below. I'll be right here to provide the information you need.

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Negative Liabilities Accounts