User Support Forum

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.

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)

JohnDMeyers wrote: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?

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.

JohnDMeyers wrote: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.

JohnDMeyers

I forgot to say thank you.

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.