How to Fix Payroll Liability And Balance Sheet Report

Hey, here we have a new article for you, that will make it easier to fix payroll liability and balance sheet reports in QuickBooks. So those who are facing the same problem till now, don’t need to worry. In this article, you will be able to troubleshoot the problem ownself.

So hurry up, and begin the blog:

Read this article to learn the basic reasons due to which your Company’s Balance sheet reports start showing incorrect facts and figures for Payroll liabilities in QuickBooks Desktop. Take a look at those reasons that come under the payroll versions. To fix those issues you have to follow the basic and simple steps and make your difficulties easy. We will provide you with the best and effective method to fix Payroll Liability and Balance Sheet Report issues.

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Fix Payroll Liability And Balance Sheet Report

Here in the below, we have discussed everything to fix the payroll liability and balance sheet reports in QuickBooks. Have a look:

Begin with Manual Desktop Payroll or DIY Payroll

A way to determine the source of payroll liability balances

1. Are you interested to view the details of payroll liabilities inside the balance sheet? if yes, then click twice on the amount to view the transaction under the Payroll Liability Item report. Click twice again on any amount if you want to review the paycheck or liability adjustments linked with the balance. Corresponding balance amounts are payroll liability amounts linked with the paychecks on your screen.
2. For viewing the outstanding balances that need to be paid and deposited you simply require to run a payroll Liability balance report. To operate you have to Visit Reports>>Employees and Payroll>>Payroll Liability Balances present at the top of the menu bar.
3. Ensure that there is a role of negative amounts in the payroll Liability Balance Reports, if you have credits then you can either get a credit/refund that is not already entered or you entered the deposits under the payroll module using Make Deposit.

Read the instructions carefully If you want to make zero these negative balances appear due to the deposits then you have to do these operations manually in your PC. 

• Open QuickBooks Desktop for visiting the Make Deposit Window. Once you visited then start finding the deposit you made. You get the option of copy all the details and delete it.
• Also, You can work with a Deposit Refund of Liabilities to create the deposits again using the same deposit date. In case you have positive amounts or can say Unpaid liabilities in your reports then you have to pay the dues through Pay Scheduled Liability Payment or Custom Liability Payment.
• If you want to create payments then it only works in case of write Check or Bills Pays through Correct Liabilities payments in write checks rather than Pay liabilities.
• For clearing the records of Non-Payable and Payroll Liability which are not yet to be paid to the third party you have to check out and adjust payroll liabilities. As an example, it includes personal use of your company car.
• You need to choose Company adjustments as your first option if you are ready to adjust the payroll liability to zero out of the balance. An important update in this, it doesn’t affect the employee yearly payroll data.

Tip for Payroll Liability And Balance Sheet Report:

Always remember that the balances and dues can occur due to entering the incorrect figures in the Liability check and Deposit refund. I have an example for you: Suppose you have a 401(k) total liability of around $1,000.00. But the liability check amount mismatched with your total liability, you mistakenly entered $1,100.00. So now there is a huge difference of $100 in both balances. The difference of both will be put on the Liability balance Report so now $100.00 indicates a negative balance. So we highly recommend checking and verifying the recent and past payments, with their balance receipts outside of QuickBooks desktop, to reduce the chance of balance mistakes, happen due to making changes in the Payroll Liability without checking receipts.

Assisted Payroll

Focus on some Key points before learning much more about Assisted Payroll. 

• Keep remembering that never make the liability adjustments to adopt changes and fewer corrections on the balance sheet if you see zero amount in your Payroll Liability Balance Report. In case you mistakenly did then it may alter your payroll data as payroll taxes with an adverse effect used by the Intuit to pay and file from your behalf.
•  An alternative option to fix the issue is to contact the higher professionals for their assistance due to incorrect figures and balances of QuickBooks Desktop Liability Payroll.

If you have positive balances for the paid taxes from Intuit then it specifies missing or incorrect, voided liability check from assisted payroll.

You will have to follow all the instructions carefully so that you can easily find and settle the missing and incorrect payroll liability checks.

• If you are one of the Assisted payroll customers then you are eligible to run a Vendor QuickReport to work with QuickBooks Desktop payroll Service.
• To operate you have to go to the Top Menu Bar and then choose Vendors>>Vendor Center>>QuickBooks Desktop Payroll Service>>QuickReport
• Now open the QuickReport review. Ensure that all the liability checks recorded are accurate or not.
• In case you will get a missing or voided liability to check it is your choice to move further or to contact the experts in order to fix the query.

If your Payroll Liability Balance overstated in the Balance Sheet indicates Journal Entries for Liabilities will be paid by Intuit

• You must need to know Journal Entries reports only impact the Balance sheet instead of the Payroll Liability report. 
• Your Balance Sheet account balances will only affect through the journal entries outside the payroll module. These all are posted to your Liability account, you are eligible to edit, delete and modify it. But you still require accountant assistance whenever you want to remove a journal entry that was entered wrong in the Balance Sheet.

Assisted and Manual Payroll

You may have posted the payroll item to the wrong account in your Chart of Accounts.

In this situation, the option left for you is to post Payroll Liability to the Liability account inside the Charts of Accounts. To check the whole process you have to follow some instructions and apply some commands for setup and edit the payroll item that meets your requirements:

• Open your QuickBooks Payroll software and then from the top menu bar open Reports>>Employees and Payroll>>Payroll Item Listing.
• For reviewing and verifying the accounts well suited for each payroll item you must have to check the columns of the Expense and Liability account.
• From the report, click twice on the account name to open, edit and modify the payroll item if you see something wrong with your account.
• Choose Next and then edit the account 
• Once all your changes are done then select the next option and hit finish again and again until all the changes are saved.
• In the next step, you will get three options but you can choose one at a time to continue if you already used the Expense item. You can either choose:

1. Update all existing transactions to use this new account. 
2. Update transactions starting on [Pick any date from the calendar date chooser]
3. Don’t update any transactions.

• To get the full assurance of inconsistencies you have to verify the Balance Sheet Reports.

If you have paid or created a liability check then the negative Balances arises due to voiding a paycheck

The point when you cleared or already paid all the liabilities linked with the Paycheck and negative balances appear in your Payroll Liability account only when you void a paycheck. It is for payroll taxes and items reported on that paycheck.

If a direct deposit paycheck is already sent from your side to Intuit and after some time you want to void a paycheck then your Direct deposit Liability account will remain the same as the amount of Direct deposit. To fix these balances manually you have to check that your Direct Deposit Liability account balance is not zero.

You need to fix all these account balances as soon as possible because it reflects on your financial reports.

Payroll Liabilities deducted from a paycheck for an employee(such as 401(k),403(b) and garnishments) Not to be paid to the Vendors applying both Create Custom Liability Payments or Scheduled Liabilities

Follow the guidelines and instructions in the given order to get complete knowledge and understanding. Start your reading with the first instruction to make correct all the Payment of the Liability. 

• For checking the account balances that exist in the report you have to run a Report based on Payroll Liability Balance.
• To apply the format and operation you have to visit Reports Menu and then Employees. After that Payroll and in the last Payroll Liability Balances.
• If you are interested in recording liability and seeing the original payment then simply open the ‘write check’ and bill payment. 
• Make a copy of the complete details of the payment and then delete it.
• Ensure that you have correctly recorded the liability. Also, you need to create a liability check accurately using Create Custom Liability payments or Pay Scheduled Liabilities.

The setting of Liability adjustments

Look at that procedure that helps you in entering the Liability adjustments causes fewer adjustments for not to show up in Bank Register. Also, adopt some changes in the payroll liability and expense accounts. For making a few corrections and changes that don’t affect your accounts you have to go through some simple steps and procedures. 

• You have to visit the Employee section where Payroll Tax and Liabilities are also present. After that, You have to pick and adjust payroll liabilities. 
• After that browse for finding the adjustments, you need to edit and correct then manually hit the Previous Adjustment button for checking the past and previous adjustments that were made. If you are unable to find it on this page.
• Once you get the adjustment then pick the Accounts affected option.
• In this step, choose Affect Liability and Expense Accounts and then hit Ok.
• Hit the OK Key option just to save the changes made in the transaction. Once all the changes are saved successfully, a message pops on the screen indicating all the changes done. Another message prompt also pops to select Assets, Expense, and Liability for the Employee account. 
• In the End, Hit ok and accept all the changes made.

Issue Might occur due to Damaged or Corrupted Files

Check out the QuickBooks Desktop Company files data damage for your payroll liability Balance Report if it becomes zero and their data doesn’t remain the same as the balance sheet. If the damage of data happens while mapping accounts then it causes error issues inflowing data from source to destination or from one location to another. 

For fixing any kind of data damage always keep some quality-specific tool in your mind including the Rebuild data/ Verify Data tool.

Summary

We tried our best to provide complete information to you, and we hope, this article based on the “Fix Payroll Liability and Balance Sheet Report” is informative for you. And able to find and make corrections in an incorrect amount of payroll liability reports and data liability reports. If in case, there is any problem to follow the instruction given by us, or have any kind of doubts regarding this article then, get our Proadvisor support through the toll-free number +1-844-405-0904 to get rid of your doubts.