Overview
This article explains how to record payroll liabilities paid with a credit card.
Expected Outcome
You will record the credit card payment.
Assumptions
You have remitted payroll liabilities to your state or the IRS using a credit card and need to record the payments in QuickBooks Desktop.
Details
Although QuickBooks Desktop is not currently designed to allow direct payment of payroll liabilities with a credit card, there are two ways you can record credit card payroll liability payments in your Company file.
Option 1: This is a one-time only action and uses a new bank account as a pass-through account:
Option2: Create a zero dollar-value check in the bank account used to pay the payroll liabilities:
- Create a new bank account in QuickBooks Desktop to be used as a pass-through account. (Name it something like "Pass Through.")
- In QuickBooks, choose Employees > Payroll Taxes and Liabilities > Create Custom Liability Payments.
- In the Select Date Range For Liabilities window, set the correct dates in the From and Through fields and click OK.
- In the Pay Liabilities window, click the Payroll Item drop-down arrow and select the taxes you paid by credit card from the list.
- Click the Bank Account drop-down arrow and select the pass-through bank account created in step 1.
- Click Create.
- Choose Banking > Enter Credit Card Charges.
- In the Enter Credit Card Charges window, click the Expenses tab.
- Click the Account column drop-down arrow and select the pass-through bank account created in step 1.
- Enter the amount you paid by credit card in the corresponding Amount column.
- Click Save & Close.
Note: You must select liabilities for a single payee. If you have multiple payees, you must repeat these steps for each payee.
- In QuickBooks, choose Employees > Payroll Taxes and Liabilites > Create Custom Liability Payments.
- In the Select Date Range For Liabilities window, set the correct dates in the From and Through fields and click OK.
- In the Pay Liabilities window, select Review liability check to enter expenses/penalties and then select the taxes you paid by credit card from the Payroll Item list.
- Click Create.
- Preview the liability check you just created and click the Expenses tab.
- Click the Account drop-down arrow and select the credit card account from the list.
- Enter the amount you paid by credit card as a negative amount in the corresponding Amount column.
- Click Recalculate > Save & Close.