Monday, November 19, 2012

QuickBooks: Clearing old, already paid payroll liabilities

I have a new client that used QuickBooks Payroll last in 2010, and would like to start using it again. There's a balance of outstanding payroll liabilities still in the system which were paid by check also in 2010. Is there a quick workaround to clear these, or will I need to find that check, delete it, and "pay" the payroll liabilities with a backdated check to replace the deleted one?

Since the goal is ONLY to remove the “red” from the Pay Liabilities screen, and the payments have already been issued (most likely using “write checks”) there is a simple method.

Click the liability AS IF you are going to pay it. This will put a value on the Items tab. Put an offsetting amount on the expense tab using the same payroll liabilities accounts as a MINUS. Recalculate the check so it is ZERO.

This "gets the red out" and does not affect the balance sheet.

Note that I strongly encourage all users to have the correct method for 2013.  If the payroll liabilities are set up, then use that method to pay them. Start the year off right, and avoid the headaches that will follow if you don’t!

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