Each time you run payroll, you accumulate payroll taxes and other liabilities to federal, state, local, and other agencies (such as Medicare) according to the agency's deposit schedule.
You can use the Pay Liabilities window to pay payroll taxes and liabilities. After you specify the date range in the Select Date Range For Liabilities window and select the liabilities to pay, QuickBooks creates the checks to pay them and records the transactions in your company file.
What if I'm an Assisted Payroll customer?
Paying payroll liabilities
Creating/reviewing the liability check
Select the Review liability check to enter expenses/penalties option to review each check individually so that you can, for example, add expenses or discounts to the checks you create.
Select the Create liability check without reviewing option to have QuickBooks simply create checks for all selected liabilities without showing them to you individually. Though we recommend that you preview your checks before you create them, this option can save some time if you do not need to review the checks to enter expenses or discounts. QuickBooks will record the checks when you click Create.
Changing the bank account from which the check is drawn
The Bank Account drop-down list displays the bank from which the check funds will be drawn.
To write the liability checks from a different account, choose the account from this drop-down list.
To add an account to this list, choose Add New. In the New Account dialog, enter the requested information, then click OK.
Important: If you change the bank account for an e-payment, you may also need to communicate this change to the agency to which you send the payment.
Adding a memo to a payroll liability check
Determining whether checks should be printed or written by hand
Changing the sort order of the payroll liabilities
Hiding zero balances
When the Hide zero balances checkbox at the bottom of the window is cleared (the default), the Pay Liabilities window shows all liabilities with activity (positive and negative balances) for the time period.
When the Hide zero balances checkbox is selected, the Pay Liabilities window shows all liabilities with activity (positive and negative balances) for the time period as well as those that have a 0.00 balance.
Note: If the liability wasn't used in the specified time period, it doesn't appear, even when the checkbox is selected.
Changing the date range (affects Form 941 and Form 940)
The Show Payroll Liabilities area displays the dates you selected in the Select Date Range for Liabilities window.
To change this date, choose from the Date drop-down list, or enter dates in the From and Through fields.
When you pay the liabilities, QuickBooks tracks the payment of those liabilities for this period (regardless of the check date). It can then report payments against liabilities by month or quarter on Form 941 and Form 940.
Running a Payroll Liability Balances report
Changing (adjusting) the payroll liability amounts
Learn more about liability adjustments and COBRA premium-assistance payments
Why do my payroll liabilities show the wrong amount due?