salary miscoded as deduction from 2007

You can "pay" the PR liability. When the check comes up, on the bottom portion click on the Expense tab. Look for an account called Suspense, I don't Know, Ask My Accountant or similar. Type in the amount of the check but with a negative sign. Type in a memo explaining that you are cleaning out the PR liability. Click the Recalculate button. The check should show zero as the amount. Make sure that there is no check mark for "Print this check". Delete the check number and replace it with PR ADJ. Save and close. The next time when you reconcile your bank check this zero check, too.

This way you are not going to record a payment that has not happened, but you are going to clean out your payroll liability. You are making sure that your tax professional/accountant will notice what did you record. Leave the rest of it to him/her.

I hope I could help.

Reka

Just an FYI, if your accountant didn't notice the liability, they aren't going to notice this.

Marc Barnes

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Thanks for your help. I am making notes for the accountant as I am going along. Hopefully in the future he will pay more attention to this company's books and how messed up things can get if you do not keep a handle on them.

Thanks again.