Payroll Liabilities Recon
HI,
After running Company Data Audit, the Payroll Liabilities Reconciliation Exceptions report had faults. I worked out that it was because in July, Aug and Sep of 2019 I entered the wages through Pay Employee instead of Spend Money as I usually do and the ATO payment was paid through Spend Money instead of Payroll Pay Liability. I have tried to correct this but because it was in 2019 it is coming up with the warning 'talk to your advisor before doing this' and will not let me enter any details. How can I rectify this?
Many thanks.
Hi CathrineJ
Welcome to the Community Forum, I hope you find it a valuable resource.
The Payroll Liabilities Reconciliation Exception report checks the total of payroll liabilities transactions that are unpaid against the balance of the linked payable account of the payroll category. Since the liabilities payments were recorded via Spend Money instead of Pay Liabilities, the liabilities will remain in the Pay Liabilities window to be cleared.
To clear the list, you can consider reversing the Spend Money transaction recorded in the past, then go to Pay Liabilities, tick the applicable amounts and pay them from the same bank account. Enter both transactions in the same period with clear notes written, the net change to the account balance is nil. I'd also suggest checking with your accountant for the best way to handle these transactions for your business/reporting set up.
