The payroll liabilities account in your general ledger is a holding place for payments due in the future not yet issued. An example of those expenses is the payroll taxes. If you file payroll taxes monthly or quarterly, you will need to post the amounts to your liability account, accounting for the expenses properly. Understanding how to Adjust QuickBooks Payroll Liabilities saccount is important to accurate ledger reports.
Increase Liabilities
1
Select the option to post a broad journal entry through the "Company" menu. Input the existing date and assign a number towards the entry.
2
Debit the payroll liability account fully for the amount of the adjustment.
3
Credit the payroll expense account you are adjusting. If you are adjusting the taxes payable, credit that ledger account.
4
Process the entry. File the documentation that supports the entry for audit purposes.
Reduce Liabilities
1
Create a general journal entry through the Company menu. Go into the current date and assign a journal entry number.
2
Credit the payroll liability account for the amount of the reduction. This entry is normally processed when your liability payments are processed.
3
Debit the money account fully for the equal amount. In the event that you credit the liability account for $5,000, debit your hard earned money account fully for $5,000.
4
Post the entry. File the paperwork that supports the adjustment for audit purposes.
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Process the entry. File the documentation that supports the entry for audit purposes.
Reduce Liabilities
1
Create a broad journal entry through the Company menu. Go into the current date and assign a journal entry number.
2
Credit the payroll liability account for the amount of the reduction. This entry is normally processed if your liability payments are processed.
3
Debit the money account for the equal amount. In the event that you credit the liability account for $5,000, debit your money account for $5,000.
4
Post the entry. File the paperwork that supports the adjustment for audit purposes.