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Intuit

Record payroll liabilities paid with a credit card

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:

  1. Create a new bank account in QuickBooks Desktop to be used as a pass-through account. (Name it something like "Pass Through.")
  2. In QuickBooks, choose Employees > Payroll Taxes and Liabilities > Create Custom Liability Payments.
  3. In the Select Date Range For Liabilities window, set the correct dates in the From and Through fields and click OK.
  4. In the Pay Liabilities window, click the Payroll Item drop-down arrow and select the taxes you paid by credit card from the list.
  5. Click the Bank Account drop-down arrow and select the pass-through bank account created in step 1.
  6. Click Create.
  7. Choose Banking > Enter Credit Card Charges.
  8. In the Enter Credit Card Charges window, click the Expenses tab.
  9. Click the Account column drop-down arrow and select the pass-through bank account created in step 1.
  10. Enter the amount you paid by credit card in the corresponding Amount column.
  11. 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.

  1. In QuickBooks, choose Employees > Payroll Taxes and Liabilites > Create Custom Liability Payments.
  2. In the Select Date Range For Liabilities window, set the correct dates in the From and Through fields and click OK.
  3. 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.
  4. Click Create.
  5. Preview the liability check you just created and click the Expenses tab.
  6. Click the Account drop-down arrow and select the credit card account from the list.
  7. Enter the amount you paid by credit card as a negative amount in the corresponding Amount column.
  8. Click Recalculate > Save & Close.

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