Adjusting incorrect liabilities

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gospeltab
Posts: 87
Joined: Wed Feb 17, 2010 11:00 pm

Adjusting incorrect liabilities

Post by gospeltab »

The payroll liabilities on the balance sheet are off (and have been for a while) I wasn't sure how to fix them, but figured now is the time to sort it out.

Federal withholding is showing an extra $ 0.30 2215-000
Social Security is showing an extra $11.50 2217-000
Medicare is showing an extra $ 0.24 2219-000
State tax is "short" money 2220-000

The pastor has been the only employee for years so I'm not sure what the extra social security is from.

As I have been looking more, it looks like there were some penalties for late payment that came out of the federal withholding and state withholding back in 2015.

Our current checkbook balance matches the bank statement.

How do I correct this? I would like this to be accurate going forward!

Thanks in advance for the help!

NeilZ
Posts: 10209
Joined: Wed Oct 08, 2003 1:20 am
Location: Dexter NM
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Re: Adjusting incorrect liabilities

Post by NeilZ »

gospeltab wrote:
Fri Apr 24, 2020 2:48 pm
The payroll liabilities on the balance sheet are off (and have been for a while) I wasn't sure how to fix them, but figured now is the time to sort it out.

Federal withholding is showing an extra $ 0.30 2215-000
Social Security is showing an extra $11.50 2217-000
Medicare is showing an extra $ 0.24 2219-000
State tax is "short" money 2220-000

The pastor has been the only employee for years so I'm not sure what the extra social security is from.

As I have been looking more, it looks like there were some penalties for late payment that came out of the federal withholding and state withholding back in 2015.

Our current checkbook balance matches the bank statement.

How do I correct this? I would like this to be accurate going forward!

Thanks in advance for the help!
FWIW ... having a bit extra in the liabilities is not a major issue. However, the Social Security liabiity, if the pastor is the only employee, should not have anything in it, as you shouldn't be paying SS on the pastor. Under IRS rules he's self-employed for SS and Medicare. So you shouldn't be paying anything to the IRS for that.

You could return the 11.50 to the checking or move it to the state tax to even things out.

How it happened ? Its happened to me, when I used the wrong liability account to pay taxes.
Neil Zampella

Using PC+ since 1999.

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