Record payroll liabilities paid with a credit card

Learn how to enter tax payments paid by credit card in QuickBooks Desktop Payroll.

Federal and state agencies allow you to pay tax liabilities using a credit card. You can pay online, or by phone depending on the agency. These credit card payments can be recorded in QuickBooks Desktop.

There are two ways you can record credit card payroll liability payments in QuickBooks Desktop.

Method 1: Record payment using a pass-through account

This method is a one-time-only action and will use a new bank account as a pass-through account.

Step 1: Create a new bank account

1. Go to Lists, then select Chart of Accounts.
2. Below, select Account, then select New.
3. Select Bank, then select Continue.
4. Enter “Pass-Through Account” in the account name field.
5. Leave the rest of the fields blank, then select Save & Close.
6. Select No if prompted to set up a bank feed.

Step 2: Create custom liability payment

1. Go to Employees, select Payroll Taxes & Liabilities, then select Create Custom Payments.
2. In the Select Date Range For Liabilities window, select a date range, then select OK.
3. Uncheck the To Be Printed box.
4. Under Bank Account, select the pass-through account created in Step 1.
5. Select the payroll liabilities paid by credit card from the list. Then select Create.
6. Next, go to Banking, then select Enter Credit Card Charges.
7. Select the Date when it was paid.
8. Select the Expenses tab.
9. Under the Account, select the pass-through account created in Step 1.
10. Under the Amount, enter the same amount you paid by credit card.
11. Under Memo, you may enter the payroll liability and reference number, if any.
12. Select Save & Close.

Method 2: Create a zero-dollar value check in the bank account used for payroll liabilities.

You must select liabilities for a single payee. If you have multiple payees, you must repeat these steps for each payee.

1. Repeat steps 1 to 3 above.
2. Under Bank Account, select the account used for payroll liabilities.
3. In the Liability check window, select the Expenses tab.
4. Under the Account, select the credit card account from the list.
5. Under the Amount, enter the amount you paid by credit card as a negative amount.
6. Select Recalculate, then select Save & Close.