The need to adjust payroll liabilities in QuickBooks arises when payroll liability report shows an incorrect amount. This report includes information about payroll items assigned to a liability account, deductions, and most company contributions. When this report shows an incorrect figure for the payroll liabilities, you need to rectify this error by adjusting the payroll liabilities in QuickBooks Desktop. In this blog, we will understand what Payroll liability in QuickBooks is and how to adjust a false payroll liability report.
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What Are Payroll Liabilities In QuickBooks Desktop?
The list of liabilities may include payroll taxes that you or your company owes for different payroll processes. The other amounts that come under payroll liabilities include health insurance contribution, 401(k) plan contributions, child support garnishments, and union dues.
Apparent Reasons for Discrepancies in Payroll Liability Balance Report:
All the calculations that QuickBooks Desktop performs, such as tax, company contributions, and tax deductions, are recorded into the Payroll liability account. This account gets generated automatically when you subscribe to a payroll service for QuickBooks Desktop products. QuickBooks Desktop can yield incorrect liabilities while creating a Payroll liability balance report. Below are the instances when you need to adjust payroll liabilities in QuickBooks to rectify the error.
- Incorrect Paid Through date of the liability payments
- A possible data damage in the company file
- You may not have updated QuickBooks to the latest version
- When you track other account where you have to track the other current liability account.
- When a paycheck is deleted or voided, you will see a liability in your payroll liability balance report
- Inactive liability account used
Adjust payroll liabilities in QuickBooks immediately, if any of the above-listed conditions exist.
How Do I Adjust Payroll Liability In QuickBooks?
There are various instances when you may see incorrect QuickBooks payroll liabilities. You may resolve the error by suppressing the causes that bring forth the payroll nuisance.
Solution 1: Recreate a Deleted or Voided Paycheck
When you void a paycheck already paid for a payroll liability, then you will see negative payroll liabilities balance sheet. In this situation, you may think how do I zero out payroll liabilities in QuickBooks. You need to recreate a deleted or voided paycheck already paid for payroll liabilities. While creating a replacement paycheck, enter a negative paycheck amount, which should be equal to the amount in a deleted paycheck. It will make the net amount of the paycheck zero. Now that you know how to clear payroll liabilities in QuickBooks see the procedures of the payroll liability error causes due to other reasons.
Solution 2: Rectify Incorrect Paid Through Dates
When you enter Paid Through date of the liability payments in a different month, you need to adjust payroll liabilities in QuickBooks in the month when they accrued.
- Find and click Payroll Center underneath Employees
- From under the Transactions tab click Liability Checks
- Navigate the drop-down menu next to the Date option and select This Calendar Year
- Now check if there is any future Paid through Dates are there; remove on finding.
Solution 3: Update QuickBooks to the Latest Released Version
Now check for available updates and install it on your system. If the mistake in payroll liabilities persist, then follow the next solution.
Solution 4: Make Use of QuickBooks Verify & Rebuild Data Utility
Verify & Rebuild Data utility works together to fix common data damage issues related to the QuickBooks. Verify Data utility determines the commonly known data damage issues in the company file whereas, Rebuild Data utility resolves those issues. Download QuickBooks Verify and Rebuild Data Utility to fix the error.
None of these procedures worked! How to fix Adjust payroll liabilities in QuickBooks?
If you are not able to adjust payroll liabilities in QuickBooks due to some technical difficulties, then get in touch with our certified professionals for error-resolution. Dial our QuickBooks error support helpline number 1.800.417.5147 to get prompt assistance.