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Kimberly74
Level 3

Employee Garnishment

We have employees who have child support garnishments.  We charge them a $5.00 processing fee.  We use Quickbooks Online Payroll to process our payroll.  I just noticed that there is a credit in our "Employee Advance Other Liability" account for the amount we have been deduction from the employees checks for the processing fee.  Is this correct?  What entry should I do to zero it out?

1 Comment 1
QBsguru
Level 7

Employee Garnishment

No the liability account should be zeroed out to an income account or a reduction to your payroll processing fee expense account.

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