Disadvantages are adjusted to convert employees’ quarter-to-date or year-to-date payroll knowledge. This also includes company contributions, employee additions, and deductions. Intuit has provided users with the tool in QuickBooks, which helps them in adjusting payroll liabilities. Intuit has supplied you with the chance to adjust payroll liabilities in QuickBooks.
This blog will educate youonhow to adjust payroll liabilities in QuickBooks 2018. We will also explain how to zero out liabilities in QuickBooks. Hence, if you are looking for the methods to adjust liabilities in QuickBooks, then stick to the blog until the end. We recommend you to appropriately follow the steps mentioned in the blog in order to avoid any failure. In case you need assistance in executing the methods, then dial our 1.855.738.2784 and talk to our highly certified QuickBooks experts. They will be happy to help you.
When do we need to adjust liabilities?
- Here are some of the common cases when the liabilities are adjusted.
- Health insurance company contribution set up with the wrong tax tracking type is fixed with the help of liability adjustment.
- Deductions, additions or YTD wages of employees who will not be receiving more paychecks are corrected by adjusting liability.
- The amount for company contribution items such as Health Savings Account (HSA) or 401(k) Company match is also changed by adjusting liability.
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How To Clear Payroll Liabilities In QuickBooks?
- Go to the Employees menu> Payroll Taxes and Liabilities > Adjust Payroll Liabilities.
- Choose if the adjustment is for the company or an employee.
- Choose Employee Adjustment in case the item which you’re adjusting is a company-paid item. It will update the Year To Date info reported on the employee W-2 form.
- Now, Choose Company Adjustment if you want to remove the balance from the Payroll Liability Balances Report.
- Fill the Taxes and Liabilities fields.
- Choose the Item Name you want to adjust.
- Fill the amount of the adjustment. Use a positive number to grow or a negative to reduce the amount.
- Choose Accounts Affected and then hit OK.
- Choose Do not affect accounts to leave balances unchanged for the liability and expense accounts. The adjustment will only change the YTD amounts on your payroll reports.
- Click on Affect liability and expense accounts for entering an adjusting transaction in the liability and expense accounts.
- Repeat the same process for other employees if needed, and then select OK.
While summing up, we hope that you have understood how to adjust payroll liabilities in QuickBooks. We also explained how to zero out liabilities in QuickBooks. However, if you are wondering, call our highly experienced QB experts at our toll-free number.