Liabilities on balance sheet

[F12Mahon]

Shouldn't liabilities drip to zero when they are paid? The only liabilities our church has are taxes withheld. How do I make the report zero out liabilities when paid? We are using Version 11.1.

[JohnDMeyers]

Your payroll item for Fed w/h should be like this:
DB 01-1110-000 checking
CR 01-2810-000 Fed W/H (liability)

Your Vendor account for your bank (or whoever you pay Fed W/H to):
CR 01-1110-000 checking
DB 01-2810-000 Fed W/H (liability)

[F12Mahon]

Your payroll item for Fed w/h should be like this:
DB 01-1110-000 checking
CR 01-2810-000 Fed W/H (liability)

Your Vendor account for your bank (or whoever you pay Fed W/H to):
CR 01-1110-000 checking
DB 01-2810-000 Fed W/H (liability)

So I don't put anything under expenses? Don't they need to show up on the income and expense report?

[JohnDMeyers]

No. Your church doesn't pay federal withholding. Your employees pay it out of their pay.

Technically, it would show up on their "income and expense statement" at their home.

[F12Mahon]

No. Your church doesn't pay federal withholding. Your employees pay it out of their pay.

Technically, it would show up on their "income and expense statement" at their home.

Ahhh, now I understand. Maybe I should take a beginning accounting class. My vocation is a CNC machinist. Accounting concepts don't come easily to me.

[F12Mahon]

JohnDMeyers

I forgot to say thank you.

[JohnDMeyers]

My vocation is a CNC machinist. Accounting concepts don't come easily to me.

You're very welcome.

I have a degree in Electrical Engineering, and I was also a high school math teacher.

I tell our CPA (who is a member of our church) that I consider engineering a science, and accounting an art.