Most users wonder if they can delete liability adjustment in QuickBooks. There are some users who do not know the right way to adjust or delete the liability adjustments. Well if that is the case, you don’t need to fret. We are here to teach you how to delete a liability adjustment in QuickBooks.
In this guide, we will draw your attention to the meaning of payroll liability adjustment and the way to delete it if required in the future. Besides that, we will show you ways to remove the scheduled payroll liability and old payroll schedule liabilities. Let’s know how to do that.
What is Payroll Liabilities Adjustment?
In QuickBooks, payroll liabilities adjustment can be any kind of payment associated with your payroll that you or your business borrow but have not paid yet. This mainly includes the taxes from employees, wages that the employee earns (but didn’t receive yet), and other costs related to payroll.
Payroll liabilities adjustment can also include another sum total that you record on the paychecks (when using the payroll items) such as:
- Health insurance aids
- 401 (K) contributions
- Garnishments for juvenile support
- Union levies
How Does Payroll Liabilities Adjustment Work?
When you perform the payroll, your QuickBooks program calculates the amount you have owed for your deduction, company contribution payroll item, and tax. Then, it keeps the record in the Payroll Liabilities account.
QuickBooks program creates your Payroll Liabilities account automatically once you subscribe to the QuickBooks Desktop Payroll. When you write paychecks, the balance of the liability account starts increasing. And when you can pay the payroll taxes or payroll liabilities, your software decreases the balance of your liability account.
It is important to pay your liability on time. After paying the liabilities or schedule liabilities, you can delete the payroll liability account if required.
How Do I Delete a Liability Adjustment in QuickBooks?
First of all, you will have to click on the Adjust Payroll Liabilities link. Then, open the liability adjustment page by using the Previous button. This is where you will find the delete liability adjustment button. To be precise, we are writing down these steps for you.
- Go to “Payroll Center”.
- Here, you will see an “Adjust Payroll Liabilities” link under the “Pay Liabilities” tab.
- Click on this link and hit the “Previous” button. Make sure you keep pressing the “Previous” button until you see the liability adjustment that you wish to delete.
- Once reached, click on the “Edit” button located in the menu bar.
- Here, you will find the “Delete Payroll Liability” option that you can click.
All you have to make sure that you use the Previous button in order to view your liability adjustments. Then, remove it from your account.
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How to Delete Scheduled Liability Adjustment in QuickBooks?
In QuickBooks Desktop, you cannot delete the tax liabilities adjustment once they are scheduled. However, you can remove other kinds of liabilities such as health insurance, 401 (k) contributions, and dental insurance.
If you are willing to remove the scheduled payroll liability in the QuickBooks program then you can do the following:
- Click on the “Employees” menu.
- Go to the “Payroll Center” option.
- Switch to the “Pay Liabilities” tab.
- Now, click on the “Change Payment Method” using the “Other Activities” drop-down menu.
- Then, choose the “Benefit and Other Payments” from the “QuickBooks Payroll Setup” window.
- Choose your “Schedule Payments” and click twice on the payroll item in order to edit.
- From the “Payment Frequency” window, click on the “I don’t need a regular payment schedule for this item” option.
- Click the “Finish” button to end the process.
Once done following these steps, you can easily remove the scheduled items from the account. All you have to do to change the payment method and edit the scheduled payments by removing the scheduled item.
How to Delete Old Schedule Liabilities Adjustment?
In case there are old payroll schedule liabilities in your account, you can remove them too. However, you need to make sure that you pay the liabilities before deleting them. Below are the steps for deleting the old schedule liabilities.
- Click on the “Payment Activities” drop-down from the “Payroll Center” tab.
- Then, click on the “Adjust Payroll Liabilities” option”.
- Here, add the total amount for your liability period.
- Click twice on the payroll item.
- After that, add the adjustment as the negative number.
- Once done, click on the “Accounts Affected” option.
- Then, click on the “Do Not Affect Accounts”.
- Click the “OK” button and edit your next payroll item.
This way, you can edit or remove the scheduled payroll liability such as health insurance, 401(k) contributions, and dental insurance.
In a Nutshell
Paying the liabilities is important to clear your record. And, if you need to delete them then you can do that too. Whether it is payroll liabilities adjustments, scheduled payroll liability, or old payroll schedule liabilities, users can remove the entry from their QuickBooks to clean the account.
Here, we have also discussed what should be included in the payroll liabilities adjustment and how payroll liabilities work. Hopefully, you find this guide helpful.
Frequently Asked Questions
Ans. In the Payroll Center, click Adjust Payroll Liabilities under the Pay Liabilities tab. Here, click the Previous option until you get your liability adjustment. Then, you can click Edit and Delete the liability adjustment.
Ans. To manually adjust the payroll liabilities, you can go to Taxes, click Payroll Taxes and then Enter Prior Tax History. Here, choose the current year and Liability period, add payments, select Tax Type, Liability Period, enter the date of payment, add check number and notes, click Negative amount to create a credit. Make sure you press the OK key to save changes.
Ans. If the Edit menu of the QuickBooks version that you are using allows you to delete the liability adjustments, then you may be able to go ahead with the purpose.
Ans. The liability account includes wages payable, salaries payable, and accrued wages payable that are used to record the net pay liabilities to employees.