WHAT IS THE CORRECT WAY TO PAY PAYROLL LIABILITES

Sandra_7045342
Sandra_7045342 Member Posts: 32
edited January 2020 in Reckon Accounts (Desktop)
There seems to be alot of different ways people say what is the best way to pay payroll liabilities. Some say to use the Employees then go to Payroll Taxes and Liabilities and select Create Custom Liability Payments.
Then others say don't ever use the Pay Liabilities Function?
So what is right & what is wrong?

Comments

  • Charley
    Charley Member Posts: 538 ✭✭✭
    edited January 2020

    For the reports function to work properly it is best to use the Create Custom Liability Payment; however what I find you also need to do is check the super or PAYG balance against what the report says what should be paid for the last quarter. I also don't use the 'Payroll Liabilities' account but set up

    ATO Running Balance

           GST Payable

            PAYG Payable

    That way you can reconcile your ATO integrated account with your balance sheet

    For Super I also set up a Super Payable (Liability account) with sub accounts for either employees or Super Funds, this also requires separate Super Payroll items  for ease of reconciling


  • Shannon Sciuto
    Shannon Sciuto Member Posts: 98
    edited February 2018
    Hi Sandra,   neither option is truly incorrect.  While using the payroll liabilities function works for most and will help manage the balance payable, a cheque or journal written to the paygw liability account will also work.  As long as your balance sheet and profit and loss accurately reflect your business activity and position then you shouldn't find yourself in hot water.  

    Often when I have clients with both GST and PAYGW I will record them together as a journal to ensure they appear as one transaction in the bank reconciliation.  Or I will create a "bank" account called BAS Clearing to enter the BAS transactions via custom liability payments and cheque function and then create either a transfer from the bank account or create a bill to the BAS clearing so they can see it appear in their bills payable reports.