Question

In QuickBooks why would you use the payroll liabilities section? Plese explain

Answer 1

Answer:-

Like other liabilities, payroll liabilities are amount you owe but not yet paid. In the case of payroll liabilities, these liabilities includes payroll tax amounts that you’ve withheld from employees or that your company owes as a result of your payrolls. Payroll liabilities also includes other amounts you tracks on paychecks using payroll items, for example: - a. 401(K) contribution b. Health insurance contribution c. Union dues d. Garnishments for child support. Quick Books desktop tracks your outstanding payroll liabilities account, based on the payroll items created on each paycheck. When you do your payroll, Quick books desktop calculates how much is owned for each tax, deduction and company contribution payroll item and records it in the payroll liabilities account. Quick books desktop automatically creates the payroll liabilities account when you subscribe to quick books desktop payroll. With each paycheck you write, the balance of this liability account increases. When you pay your payrolls taxes or other payroll liabilities, Quick books desktop decrease the balance of this liability account.