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AMM7614
Level 1

Prepaid expenses - How to apply credit?

Hello! We prepay health insurance premiums and expense monthly... We received a refund of premium for an employee who was overpaying. The credit is for December, how would I reflect this in QB? Credit Prepaid insurance and debit insurance expense? Thank you for the help!

1 Comment 1
AldrinS
QuickBooks Team

Prepaid expenses - How to apply credit?

Help has arrived, AMM7614.

 

Rest assured, I'll help you enter the refund in QuickBooks in no time!

 

A quick and easy way to reflect this in QuickBooks is to record a Payroll Liability Refund Check. The steps below will guide you on how to create it:

  1. From the Employees menu, select Payroll Taxes and Liabilities, then Deposit Refund Liabilities.
  2. Choose the agency where the refund came from.
  3. In the Refund Date field, enter the date when you received it.
  4. In the For Period Beginning field, enter the first day of the pay period that the refund affects.
  5. Select how you want QuickBooks to handle the deposit:
    Group with other Undeposited funds: Adds the amount in a holding account, which you can deposit to the right account later on.
    Deposit To: Records the amount to the account of your choice.
  6. In the Taxes and Liabilities section, select the payroll item affected by the refund.
  7. In the Amount column, enter the refund amount.
  8. Click OK.

All of this information and more is available in our guide on how to record a payroll liability refund check.

 

That should get you going in the right direction. Don't hesitate to reach out to me again if there's anything else I can help you with. Thanks for dropping by, wishing you and your business all the best.

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