In a business, payroll liabilities are the most crucial element. It is the amount that you have deducted from your employees’ wages but have not paid. It is necessary to adjust such types of liabilities from time to time so that the payroll liabilities accounts don’t get any error over the period. You can easily handle such complex activities easily with the help of QuickBooks as the accounting software comes featured with a dedicated tool to help the accountants to adjust payroll liabilities securely. It is never challenging to keep the QuickBooks payroll liabilities report flawless if you have QuickBooks in place.
Here are the payroll liabilities that you need to adjust periodically or frequently so as to make sure you don’t owe any liabilities:
- Health insurance contribution
- 401 (k) contribution
- Union Dues
- Any other contributions towards the social security
So, these are the only liabilities that businesses pay later to the concerned authorities. But they are required adjusting periodically in accordance with your business requirements. Below are some common situations when you need to learn how to adjust payroll liabilities and reports in QuickBooks:
- If you have set up health insurance contribution using inaccurate tax tracking category. You need to correct the amount using a right tax tracking category
- If you have to edit or delete the wage details or payroll information for the employees who are not going to receive the paychecks
- If you have to increase or decrease the contribution amount
There are some specific technical procedures to use liability adjustment tool in QuickBooks. Here, the blog elaborates the steps to help you learn how to set up payroll liabilities in QuickBooks and then how to adjust the liabilities amount.
- Go to Employees > Payroll Taxes and Liabilities > Adjust Payroll Liabilities
- Click on a right effective date
- Go to the Taxes and Liabilities section and select Payroll Item
- Now it opens up a page where you need to fill up the amount in the related fields
- You can now click Next Adjustment if you have more employees—but you don’t forget to change three important fields like Effective Date, Employee Name, and Date
- If you don’t have more employees to adjust payroll liabilities, then click OK to save the changes that you have made in the payroll liabilities accounts
So, these are some technical procedures to set up or adjust payroll liabilities in QuickBooks. You can also use the same procedures for clearing payroll liabilities QuickBooks if required.
The process of creating or adjusting payroll liabilities comprises of some tricky steps, and they should never be executed casually as it may cause some unnecessary issues in the payroll reports.
If you are looking for some reliable solutions to learn how to make payroll liability adjustments in QuickBooks, then you would better go for a real-time technical support for QuickBooks Payroll. You can get our toll-free QuickBooks help phone number to contact our expert QuickBooks Payroll professionals.