Novated lease - Payroll Liabilities

crankins

I have outstanding amounts showing in payroll liabilities which have already been paid through accounts payable. Is there any way I can remove these. I tried Adjust Payroll Liabilities, but it says I cannot adjust this payroll item.

Thanks, Cheryl

Acctd4

Hi Cheryl

You don't mention it in your question but your thread title states it's a Novated Lease - Is that correct ? If so, this needs to be set up very specifically with post & pre-tax Payroll Items & a corresponding GJ for the employee contribution. It's fairly involved so you're welcome to contact me direct if you'd like my assistance with it ☺️

crankins

Thanks Shaz. I have the leases set up an operating correctly now, I was just needing to remove the previous liabilities which have been reconciled.

Acctd4

Hi @crankins If they've been set up correctly, I'm wondering why you have previous liabilities still sitting there ... or have these just not been "paid" in RAH from the correct (Pay Liabilities) area ?

crankins

Thanks, that's correct. All payments including tax and GST have been made outside the payroll liabilities area. This was prior to setting up the Leases as we now have them set up.

Acctd4

I've just gone back & had a look at my Novated Lease Payroll Items - They should actually be Addition-types so shouldn't be in your "Pay Liabilities ..." area.

When you go into Adjust Payroll Liabilities, can you select them in the dropdown ("Item Name") list ?

crankins

Yes, I can select them in the drop down, but then it doesn't allow adjustment.

Acctd4

Aha .. it looks like they're not linked to liability accounts then (which is why the system can't adjust them here in the "Liabilities" area)

I would try clearing them via the YTD Adjustments section instead (under the Employees dropdown menu > Set Up YTD Amounts) ☺️

crankins

Thanks, I will give this a try.