How do I track Payroll Leave Liability on my Balance Sheet?

Legacy KB ID: 1219

Question

How do I track Payroll Leave Liability on my Balance Sheet?

I can track my leave liabilities via the leave liability report, as it shows me both the number of hours accrued to each employee as well as the dollar amount associated with this. Unfortunately these amounts are not represented in my Balance Sheet. How can I get QuickBooks to show these amounts?

Answer

The user will need to manually enter this liability:

1) Create an 'Other Current Liability' account, make this a sub account of 'Payroll Liabilities'.

2) You will need to work out how much the liability has changed over the period. To do this, compare the leave liability report with the opening balance for the period of the leave liability account. This will give you the figure that you require to alter your liability by.

3) Enter a journal entry adjusting the leave liability account by this figure, and offsetting it against a Payroll expense account.

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