What is Payroll Liabilities in QuickBooks?

The Amounts you owe but haven’t paid is called Liabilities. It includes payroll tax amounts that your company owes as a result of payroll.
It also includes 401(k) contributions, Health insurance contributions, Union dues, Garnishments for child support

Introduction of Payroll Liabilities accounts.

When you working of payroll, QuickBooks calculates each owed taxes, including deductions and company contribution payroll item. Then it is recorded in Payroll Liabilities.
QuickBooks Desktop creates the Payroll Liabilities account automatically when got subscription of QuickBooks desktop payroll. The balance of the liability account increases with generation of each paycheck. So when you pay your payroll taxes including other payroll liabilities then QuickBooks Desktop decreases the balance of this liability account automatically.

Why it\'s better to pay with Payroll liability checks

Always pay your payroll liabilities through payroll liability checks. You can easily create them from the Pay Payroll Liabilities window.
By using payroll liability checks, it is easy to track the liabilities you\'ve paid. As well as track how much you still owe also.

Brief introductions of Payroll Liability Balance report?

A date range report is shown by Payroll liability balance report due to which it is easy to tack any financial activity. Let’s explore a few things about the Payroll liability balance report
Paychecks are dated within the date range of the report. So it is easy to notice that it is the paycheck date (not the pay period ending date) as well also determines whether the paycheck is in the date range of the report.
Payroll liability checks for liabilities owed for any period ending within the date range of the report.
For example, if the report covers February 1 through November 31 of a given year, then liability check including liability owed for the period ending November 31. Even check might be dated December 15. However, it doesn\'t include a liability check dated February 15 of that year, which was written for a liability owed for the period ending December 31 of the previous year.
You can easily adjust your Payroll liability with an effective date within the date range of the report
Employee year-to-date (YTD) summaries dated within the date range of the report.
Prior payment summaries for liabilities owed for a period ending within the date range of the report. The Payroll Liability Balances report shows the same amounts as the Pay Liabilities window when the To date for the report is the same as the Through date in the Pay Liabilities window.
When generating a Payroll Liability Balance reports, QuickBooks Desktop can produce wrong liabilities. It occurs if the Paid Through date of the liability payments is in a different month than the liabilities accrued and an user can easily fix error in Payroll Liabilities in QuickBooks. For example, liabilities accrued in October, but paid through November, can show as due. This is because when the Payroll Liabilities Balance report is created from the Report Center, it contains an incorrect date filter.

Run the Payroll Liability Balances report

  • It\'s easy and quicker  to run the Payroll Liabilities balance report.
  • Select Reports.
  • Select Employees & Payroll.
  • Select Payroll Liability Balances.
  • Set the date filter.

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