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    Set up and pay scheduled or custom (unscheduled) liabilities

    Article ID: 1000233

    Overview

    A scheduled payment refers to payroll taxes or non-tax liabilities that are paid together at the same time to the same agency. For example, you typically pay your federal withholding, Social Security and Medicare taxes at the same time to the IRS.

    This article provides instructions on how to set up a scheduled liability or pay an unscheduled liability. A demo video is also provided to show you the step by step instructions in QuickBooks.

    Details

    You must have a current tax table and software updates for QuickBooks to calculate your payroll taxes correctly. You must be in single-user mode with administrator rights to edit a liability payment schedule.

    You can set up a schedule for payroll liabilities that are calculated on your employees' paychecks and are regularly paid in QuickBooks. These can include payroll taxes and employee benefits that are reported on paychecks such as 401k or Health Insurance premiums.

    For Assisted Payroll Service, Intuit debits and pays your payroll tax liabilities directly to the agencies. For taxes paid by Intuit on your behalf, see Assisted Quick Tax Guide. Intuit does not pay your liabilities for employee benefits.

    To view/edit liabilities and set up a scheduled payment, read the instructions below . . .

    1. Choose Employees > Payroll Center. Click Related Payment Activities and select Edit Payment Due Dates/Methods.
      • QuickBooks 2014 and higher:  Choose Employees > Payroll Center. Click the Pay Liabilities tab.  Towards the bottom, under Other Activities choose Change Payment Method.
    2. Select Schedule payments.
    3. Select the tax liability that you want to edit or schedule a payment for.
    4. Click Edit.
    5. Enter the appropriate payment information.
      NOTE: If the payment frequency option you need is not available in the drop down list, check the option Let me use a different payment frequency and click Next. Set up a custom payment schedule.
    6. Click Finish > Finish Later.

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    The IRS does not offer a weekly liability payment schedule. If you are required to make a payment several days after running payroll, the IRS considers that a semiweekly basis. When setting up your federal liability payments, select the Semiweekly option for the frequency.

    Before you can pay your payroll taxes and other liabilities, you must have a payee name associated with each liability. Usually the payees are tax agencies, but they may also be a bank or an insurance company.

    To assign a payee name, read the instructions below . . .

    1. Choose Lists > Payroll Item List.
    2. Double-click the payroll item to open the Edit payroll item window.
    3. Click Next until you reach the Liability agency window.
    4. Click the Enter name of agency to which liability is paid drop-down arrow and select the agency (payee). Click Finish.
    5. Repeat steps 2 through 4 for each liability you want to assign a payee name.

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    To pay a scheduled liability, read the instructions below. . .

    1. Choose Employees > Payroll Center.
    2. QuickBooks 2014 and higher: Click the Pay Liabilities tab.
    3. In the Pay Scheduled Liabilities (in QuickBooks 2014 and higher the Pay Taxes & Other Liabilities) section, mark the liabilities you want to pay and click the View/Pay button.
    4. Ensure the date and amounts are correct and select whether you want to print the check. (Liabilities are accrued on the date the paycheck is issued, not the pay period of the check.)
    5. To enter expenses/penalties click the Expenses tab on the liability check.
    6. In the Account field, select the expense account you will use to track payroll expenses and penalties. Enter the amount in the Amount column.
    7. Click the Recalculate button and confirm that the amount of the liability check now includes the amount of the expense or penalty.
    8. If paying liabilities by electronic funds transfer (EFT), clear the To Be Printed checkbox and type the letters "EFT" in the No. (check number) field of the liability check.
    9. Click Save & Next or Save & Close.
    10. The Payroll Liability Payment Summary window will open. You can review the payments you scheduled, print a summary, and also print the checks.


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    To create an unscheduled or custom liability check, read the instructions below . . .

    1. Choose Employees > Payroll Center. Click Related Payment Activities and select Create Custom Liability Payments.
      • QuickBooks 2014 and higher:  Choose Employees > Payroll Center. Click the Pay Liabilities tab.  Towards the bottom, under Other Activities click Create Custom Payments.
    2. In the Select Date Range For Liabilities window, select the date range for the payroll liabilities you want to pay and click OK. (Liabilities are accrued on the date the paycheck is issued, not the pay period of the check.)
    3. Select the To Be Printed option if you are going to print the liability check.
    4. Select the bank account for the liability check.
    5. Select the date you want to appear on the liability check.
    6. Select Review your liability check before creating to enter expenses/penalties or Create liability check without reviewing.
    7. Select the payroll item you want to pay and click Create.
      • If you select multiple payroll items, the items paying to the same agency will combine onto one liability check. Items paid to separate agencies will produce multiple liability checks. Verify the check amount and item list under Payroll Liabilities to be sure the check is accurate.
    8. If you chose Review your liability check before creating to enter expenses/penalties in step 6, a liability check appears. (If you did not choose that option, you can view the liability check created from your check register.)
    9. To enter expenses/penalties click the Expenses tab on the liability check.
      1. In the Account field, select the expense account you will use to track payroll expenses and penalties. Enter the amount in the Amount column.
      2. Click the Recalculate button and confirm that the amount of the liability check now includes the amount of the expense or penalty.
    10. If paying liabilities by electronic funds transfer (EFT), clear the To Be Printed checkbox and type the letters "EFT" in the No. (check number) field of the liability check.
    11. Click Save & Close to record the transaction.

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    External Links

    For additional information on which payment schedules may apply to you, visit the IRS.gov.

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