A complete guide to Adjust Payroll Liabilities in QuickBooks

1. Adjust Payroll Liabilities in QuickBooks: Learn the Easiest Method Owners of businesses who use QuickBooks often need to adjust the payroll information in the QuickBooks payroll. They need to change the data in the payroll liabilities account. For this purpose, they can use liability adjustment. If you also want to adjust payroll liabilities in QuickBooks, continue to read the blog for easy steps. One of the best ways to Adjust Payroll Liabilities in QuickBooks is to consult with a certified specialist. Get in touch with our QuickBooks support team by dialling 1.855.738.2784 anytime, any day.

2. Top Reasons for Using Liability Adjustment in QuickBooks Some of the reasons for using liability adjustment in QuickBooks are as follows: If you want to change deductions, additions or year-to-date (YTD) wages of an employee, you can use liability adjustment. For making any changes to the amount for the company contribution items such as HSA or 401(k) company match, you may need to use the liability adjustment. If an incorrect tax tracking type has been setup for a payroll item or a company contribution item, you can use this tool.

3. Steps to Follow to Change Payroll Liabilities in the QB Desktop You need to follow these steps for changing payroll liabilities in QB desktop:

5. Step 1: Identify the discrepancies in payroll You should first run a payroll checkup on your QB desktop. Now, for each month/quarter of the payroll liability, you should run a payroll summary report.

6. Step 2: Make Changes to Your Payroll Liabilities Navigate to the ‘Employees’ tab and choose the ‘Payroll Taxes & Liabilities’ tab. Click on the ‘Adjust Payroll Liabilities’ tab. You can select the month/quarter from the ‘Date’ and ‘Effective Date’ tabs. Navigate to the ‘Adjustment is for’ tab and choose ‘Employee Adjustment’ for adjusting a company paid item. You can select the ‘Company Adjustment’ option for adjusting balances from payroll centre. Click on the ‘Item Name’ tab and choose the payroll item that you want to adjust. You can now enter the amount for the adjustment. If you want to do a wage based adjustment for an employee, put the amount in the ‘Income Subject to Tax’ column. For your reference, you can write a note under the ‘Memo’ column. Choose the ‘Account Affected’ tab and click on the ‘OK’ button. If you want to make changes to the liability and expenses accounts, choose the ‘Affect liability and expenses accounts’ tab. Otherwise, hit the ‘Do not affect accounts’ option. You can repeat the exact same process for other employees.

7. Step 3: Verify whether payroll liabilities are updated You should run the payroll summary report to verify the payroll liabilities. Now, for verifying the amounts that are to be paid, you should run the payroll liability balances report. So, this was the process to adjust the payroll liabilities in the QuickBooks. You need to follow all the steps in the correct sequence to successfully adjust the payroll liabilities. For further assistance, feel free to reach out to our QuickBooks Support Team by dialling 1.855.738.2784 .