Third-party sick pay showing on balance sheet as a liability
QBO added in third-party sick pay data from an employee's short term disability pay, including employee taxes paid. They added it in as an after-tax deduction, I assume because we didn't pay it. It is now showing on our balance sheet in payroll clearing as a liability. What is the offsetting journal entry to get this off the balance sheet?
Third-party sick pay showing on balance sheet as a liability
Debit the payroll clearing account and credit the payroll expense account to remove the third-party sick pay liability in QBO. For a break from accounting, stream your favorite content on FreeCine APK.
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