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NicWKDs's avatar
NicWKDs
Cover User
5 years ago
Solved

Payroll Liabilities

I have made some deductions in our payroll - repaying an overpayment of wages and a staff loan.  These amounts have both been paid in full via weekly payroll deductions, but the amounts are still sit...
  • Melisa_D's avatar
    Melisa_D
    5 years ago

    Hi NicWKDs, 

     

    Thanks for your response. Generally speaking an over payment and repayment would be processed as per this help article Fixing a payroll overpayment or underpayment. In regards to the employee loan, generally this would be set up as an asset not a liability as per the help article Wage advances and employee loans. 

     

    If you're unable to delete/reverse the pays and reprocesses as per the help article, I would recommend speaking to your accountant or financial advisor about the relevant journals to clear the liability. 

NicWKDs's avatar
NicWKDs
Cover User
5 years ago

Hi Melisa

 

The deductions are not linked to payroll liabilities.  I set up a liability account for the staff loan and linked that deduction to that liability - so that liability is now zero.  The repay overpayment is linked to Salaries and Wages - as it was repaying overpaid wages.  Because the deductions are not technically being paid onto a third party such as a child support payment, I don't know how to get them marked as paid.  Is it going to cause any issues if they are left as not paid?

 

I hope that makes sense!

 

Regards

Karen

Melisa_D's avatar
Melisa_D
Former Staff
5 years ago

Hi NicWKDs, 

 

Thanks for your response. Generally speaking an over payment and repayment would be processed as per this help article Fixing a payroll overpayment or underpayment. In regards to the employee loan, generally this would be set up as an asset not a liability as per the help article Wage advances and employee loans. 

 

If you're unable to delete/reverse the pays and reprocesses as per the help article, I would recommend speaking to your accountant or financial advisor about the relevant journals to clear the liability. 

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