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rsteenbu52
Level 2

ICHRA Reimbursements

We use a third party payroll company who  automatically updates our QB Online with each payroll.  We reimburse our employees through payroll for their health insurance premiums. The reimbursements are downloaded as other liabilities.  This results in  our balance sheet showing a negative figure for Other Liabilities.  I recently lost our bookkeeper and I am in a quandry as to how to correct this (it does need correcting, right?) I am thinking that the remibursements should be going to an account other than "Other Liabilites" Would this correct the problem? Any help would be appreciated.  Thank you.

 

Solved
Best answer May 16, 2021

Best Answers
SarahannC
Moderator

ICHRA Reimbursements

Good day, rsteenbu52. 

 

Yes, you got it right. Below are steps to change your payroll account information:

 

  1. Go to the Gear icon in the top right corner.
  2. Select Payroll Settings.
  3. Choose Preferences at the top of the page.
  4. Click Accounting Preferences.
  5. Click the drop-down arrow. Then, choose the correct account for this.

 

 

That will do. You can always check the lists of payroll reports that you can run in QuickBooks Online. This will guide you in accomplishing different information in QBO: Available in QuickBooks Online Payroll.

 

Please let me know if you have other questions. Take care and stay safe always.

View solution in original post

8 Comments
Jen_D
Moderator

ICHRA Reimbursements

Hello there, @rsteenbu52,

 

I can share some insights on how you can resolve this. Normally, if you have an outside payroll provider, you can record entries in QBO manually to maintain your financials.

 

Manual payroll in QBO is done using journal entries. If you have outstanding balances for the taxes that are already paid, you can resolve it using a JE. Before doing so, we always do recommend getting in touch with an accounting professional when doing some adjustments in your books. 

 

Here are the steps to do that:

 

  1. Press + New then use a Journal Entry.
  2. Under the Journal date, enter the paycheck date.
  3. If you want to track the paycheck number, enter it in the Journal no. field.
  4. To account for the tax payments, use the Federal or State liability tax items and enter the amount in the Debit column. Debiting a liability means reducing its balance.
  5. Next you can put the bank used to pay for the liability, then add the amount to the Credit column.
  6. Once done, save the entry.

 

To guide you further with the manual payroll in QuickBooks, see the following link: Manually enter payroll paychecks in QuickBooks Online

 

Kindly post here again if you have other concerns about payroll or general concerns with QBO. I'll be right here to help you. Have a good one!

rsteenbu52
Level 2

ICHRA Reimbursements

All the payroll liabilities download automatically and we clear them through the bank. However, the reimbursements are going to other liabilities and creating negative line items on the balance sheet. If we change the account from other liabilities to employee healthcare reimbursements will that correct the problem?

SarahannC
Moderator

ICHRA Reimbursements

Good day, rsteenbu52. 

 

Yes, you got it right. Below are steps to change your payroll account information:

 

  1. Go to the Gear icon in the top right corner.
  2. Select Payroll Settings.
  3. Choose Preferences at the top of the page.
  4. Click Accounting Preferences.
  5. Click the drop-down arrow. Then, choose the correct account for this.

 

 

That will do. You can always check the lists of payroll reports that you can run in QuickBooks Online. This will guide you in accomplishing different information in QBO: Available in QuickBooks Online Payroll.

 

Please let me know if you have other questions. Take care and stay safe always.

View solution in original post

rsteenbu52
Level 2

ICHRA Reimbursements

When I click on the gear ICON in the upper right hand corner of my screen (Quickbooks Online) there is no option for payroll settings. Am I in looking in the wrong place?

GlinetteC
Moderator

ICHRA Reimbursements

Thanks for getting back to us, rsteenbu52. I can help share additional information as to why you have no option  for Payroll settings.

 

You may not have subscribed to payroll that's why you're unable to see the payroll option. You'll want to subscribe to our QuickBooks Online Payroll services to enjoy the features of our plans. Please check out this link: Choose from our newest payroll services.

 

Moving forward, you can change your payroll account to your employee's reimbursement to fix this.

 

Here's an article that  provides information managing payroll in QBO for your reference: Set up and manage payroll schedules.

 

If you have any other payroll concerns, please don't hesitate to add them in the comment section. The Community is here to help.

rsteenbu52
Level 2

ICHRA Reimbursements

Unfortunately that doesn’t help resolve my current issue.

rsteenbu52
Level 2

ICHRA Reimbursements

 
JessT
QuickBooks Team

ICHRA Reimbursements

Hi rsteenbu52,

 

If the transactions were downloaded from your bank, you can undo and recategorize them so they show you up correctly on your reports. By the way, this isn't the normal way we do manual payroll in QBO because we use journal entries. Anyway, I'll walk you through undoing a few transactions.

  1. Go to the Banking menu or Transactions menu.
  2. Go to the Banking tab.
  3. Select tile for the bank where you downloaded the transactions from.
  4. Select the Categorized tab.
  5. Find the transactions you want to unmatch.
  6. Select the blue transaction link in the Added or Matched column to see the matched transaction.
  7. Select Undo from the Action column.
  8. Go back to the For Review tab and recategorize the transactions.

That's it. If you have other questions in mind.

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