Tips to Know While Running Payroll Liabilities in QuickBooks

by Account Cares QuickBooks Services Provider Company

In order to fulfill your payroll-related tasks in an efficient manner, you may keep track of various parameters that are connected to Payroll Liabilities in QuickBooks. However, it is important to know the basics first, such as what a payroll liability or its report is in the first place..

Here, you will come to know about what a Payroll Liabilities Report is and how you can get one to be generated in your QB software. The steps to do so have been listed in a very simple and easy-to-follow manner. You can read this blog whenever you are having difficulty while doing Manual Payroll in QuickBooks.

Payroll Liability and Related Terms

As the name suggests, it is the kind of liability that has to be calculated during payroll processing. It includes those amounts of money which you have not paid yet to whoever you owe, such as taxes that you have to pay after withholding them from your employees.

Your organization could also owe money after payrolls as well as various other sums of money that you may deduct from your employees’ salaries. These include 401(k)s, insurances for health, dental, etc., union, child support and so on.

Payroll Liabilities Account - All this information has to be stored at a place where the user can easily access it whenever required. This place is an account called the Payroll Liabilities Account, where all of the liabilities are recorded after being calculated by QuickBooks Desktop.

The software computes all of these amounts at the time of payroll processing. Items related to company contribution, tax deductions, etc. are all accurately measured and noted in the account, which is automatically created once you begin a subscription with QuickBooks Desktop Payroll.

Payroll Liability Checks - Every paycheck that you fill increases the balance in the Payroll Liabilities Account, whereas every payment you make for the liabilities decreases the balance. It is recommended that you make these payments using Payroll Liability Checks at all times.

These can be created in the Pay Payroll Liabilities window and ensure a more precise and accurate tracking of your expenses. This is because your QB software can then calculate the exact amount of liabilities of any kind you have paid and how much you have to pay.

What Does the Payroll Liability Balances Report Show?

When you try to open this report, you are asked to enter a date range from which to view the lists of paid and due amounts. The following are all of the details that you can find in a payroll liabilities report-

● Any adjustments that have been made in the adjust payroll liabilities in Quickbooks whose date of effectiveness comes within the date range mentioned.

● Every check that you have written in the time period mentioned by you. Keep in mind that the date when the paycheck was written will decide if the check comes within the date range requested.

● Any checks that you have written for payroll liabilities coming within the time period of this report.

● YTD summaries for employees that fall under the date range of the report.

If you want a report for Payroll Liabilities in QuickBooks for a particular time range, then simply follow these steps-