Problem

This article explains how to find and remove liability payments made in Write Checks instead of Pay Liabilities, and how to enter liability payments to match them.

Expected Outcome

You will create new liability payment checks to correct liability payments that were made in the Write Checks window.

Assumptions

You have an active QuickBooks Desktop payroll subscription.

Details

You will create new liability payment checks to correct liability payments that were made in the Write Checks window.

Note:

  • If you have payroll liabilities that you need to pay on regular basis, we recommend that you Set up a payroll liability schedule.
  • If you have QuickBooks Desktop Payroll Assisted, Intuit pays your payroll tax liabilities on your behalf. You are still responsible for paying your other (non-tax) payroll liabilities such as 401(k) or health insurance premiums.

If you have reconciled or need additional information about clearing overdue scheduled liabilities see Scheduled liabilities show as overdue or in red.

To correct liability checks written in Write Checks or the register:

  1. Find and remove original manual checks in the register.

    1. Make a backup of your Company file.
    2. Find the liability payments made in Write Checks or in the bank register:
      1. Choose Vendors > Vendor Center.
      2. Select the vendor to whom you wrote the check.
      3. Double-click the check in question in the Vendor Center where transactions are displayed (adjust the date range by clicking the drop-down menu next to Date, if necessary).
      4. Print copies of the check to reference when creating the liability check and note the original date, amount, check number, and the expense account(s) listed on the check.
      5. Click Save & Close.
    3. In the Results window, select the check and click Go To.
    4. Print copies of the checks to reference when creating the liability check, and note the original date, total, expense account, and check number assigned.
    5. Click Edit on the top menu bar.
    6. Click Delete to delete the check from the register.
  2. Enter a liability check to match each of the checks created in Write Checks.

    1. Choose Employees > Payroll Center.
    2. In the Payroll Center, go to the Pay Liabilities tab.  At the bottom, from the Other Activities list, click Create Custom Payments.
    3. In the Select Date Range for Liabilities window, set the date range to include all the checks created in Write Checks and click OK.
    4. Select the appropriate payroll item by clicking the checkmark column next to the item and enter the correct amounts in the Amount to pay column.
    5. Select Review liability check to enter expenses/penalties and click Create.
    6. Update the check number and date to match the original check created in Write Checks. Alternatively you can change the check number to the letter C (for correction), and update the check date to match the date the payment was due.
    7. If needed, click the Expenses tab to add any penalties/interest amounts.
    8. Click the Recalculate button.
    9. Click Save & Close to record the transaction.
    10. Repeat the process for each incorrect check.

If you do not want to delete the Write Checks from QuickBooks Desktop:

To determine whether a liability was paid with Write Checks:

  1. Choose Vendors > Vendor Center.
  2. Click the vendor's name.
  3. In the Type column, ensure all are listed as Liability Check.
  4. If there is a Check, double-click to view the transaction.
  5. Verify that this transaction was created to pay payroll liabilities.

If a liability was paid through the Write Checks screen or Bill Payments:

  1. Back up the Company file.
  2. Go to Write Checks or Bill Payment and use the Previous and Next keys to locate the payment. Note the amount paid and the expense account used.
  3. In the Payroll Center, go to Pay Liabilities tab, and select the overdue liability that was paid through Write Checks.
  4. Click the View/Pay button, which brings up the liability check.
  5. Click the Expense tab.
  6. In the Account column, click the drop-down arrow and select the account used in Write checks. In the Amount field, enter a negative amount equal to the amount of the liability check.
    Note: If the liability shown as being owed was only partially paid through Write Checks, enter the actual amount paid through Write Checks as a negative instead of the whole amount shown as being owed.
  7. Click the Recalculate button to zero the check amount.
  8. Uncheck the To Print box. If the check number field populates, remove the check number. Date the transaction to be the same date as the payment that was already entered into the QuickBooks Desktop bank register.
  9. Click Save > Close.

If you do not want to use the Payroll Liabilities module to pay your liabilities in the future, you may change the liability account in the Payroll Item. This will correct all past and future payments.