payroll clearing account and payroll liabilities

OS Mary Joy Talapiero
OS Mary Joy Talapiero Member Posts: 1
edited April 2020 in Reckon One
Hi. I have created a pay run in reckon One. The liability account we are using is Payroll liabilities. After I finalised the pay run, the wages payable amount does not appear in the liability account of the Balance sheet report but it is in the Payroll clearing account. Is there another way to fix this other than adding a manual journal? Thanks!

Comments

  • Kwikbooks (Professional Partner)
    Kwikbooks (Professional Partner) Member Posts: 824 ✭✭✭
    edited April 2020
    Hi OS

    The payroll liabilities are just that the liability you still need to pay that was deducted from the payroll, Super, PAYG, child support, union fees, anything you deducted and have to pass on.

    Payroll clearing accounts are the only way to go, so R1  must have set it up by default (don't use R1 payroll).   when you create the paycheque/payrun the net wages goes to the clearing account (deductions to liability acct).  When you pay the wages from the bank you put the transaction to the payroll clearing account & not wages & salaries.  This way you can reconcile the account and know the amount on the payment summary at the end of the year matches how much they have been paid to the cent.

    it can give you the theory, but not where to look in R1 payroll, the payroll items set up will be linked to the expense - liab. - clearing account that you want them to go to.

    I would recommend setting up different liab. accts for PAYG, Super, child support etc do NOT put them all in one, it is too hard to reconcile if it doesn't balance and sometimes too hard to identify which is super & PAYG in some accounting systems.  All your wage items hourly, salary, O/T, allowances all should go to wages & salaries or Payroll expenses (not liab.)  If you need to identify certain types of wages i.e commission separately, then create a commission paid expense (sub acct of wages & salaries if it does it) and link your payroll item to the account you set up.
  • Natasha_10505766
    Natasha_10505766 Member Posts: 1
    edited March 2020
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