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Jeffrey7
Level 2

How to record payroll liabilities that were paid with credit card

How do you record payroll liabilities that were paid with a credit card? It seems like Quickbooks only allows you to select a "bank" account to pay the liabilities.

1 Comment 1
ReymondO
QuickBooks Team

How to record payroll liabilities that were paid with credit card

Hey there, @Jeffrey7.

Yes, you're right. QuickBooks Desktop (QBDT) isn't currently designed to allow direct payment of payroll liabilities with a credit card.

 

However, there are two ways on how you can record credit card payroll liability payments in your Company file. Here are those:

 

Option1: Create a dummy bank account as a pass-through entry. This will serve as a payment method just to record your credit card transactions. 

 

  1. Go to Lists at the top menu, then select Chart of Accounts.
  2. Click the Account drop-down at the bottom, then choose New to create a new account.
  3. Select Bank as an account type, then Continue.
  4. Enter the account details.
  5. When you're done, click Save & Close to close the window.

credit card bank.PNG

Once done, follow these steps to pay scheduled or custom unscheduled liabilities in QBDT.

 

Option2: Create a zero dollar-value check in the bank account used to pay the payroll liabilities. You use this article as your reference: Record payroll liabilities paid with a credit card.

 

Additionally, run the Payroll Liability Balances report. This will show you the information about payroll items assigned to a liability account, most deductions, and most company contributions. 

 

I'm still here if you have other questions regarding your payroll service. Just post your questions here, I'll respond as soon as possible.

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