How to Zero Out Payroll Liabilities in QuickBooks?
Managing payroll is one of the more complicated aspects of running a business, particularly when it comes to liabilities that are payroll-related. This generally refers to wages that are earned and not yet paid, as well as taxes that are owed to the government. If you find yourself looking to zero out payroll liabilities in QuickBooks , you're certainly not alone. Here, we'll guide you through a process that makes sure your payroll liabilities are zeroed out and in the most accurate manner possible. What is Payroll Liability? Understanding payroll liabilities is essential before we explain the process on how to zero it out. Payroll liabilities usually include: Employee Wages: Payments due to employees for working hours. Taxes Withheld: Federal and state income taxes, Social Security and Medicare, as withheld from the employee's wage Employer Taxes: Taxes, such as Social Security and Medicare contribution, unemployment insurance, and other. QuickBooks tracks these liabilit...