#8 on the list of "8 Things Every Business Owner Should Know How to Do in QuickBooks"
Review Payroll Liabilities
- HOW? Employees – Employee Center - Liabilities
- Look at the “Pay Liabilities” section. All liabilities should be current (no red!)
- If you have tight cash flow, I highly recommend that you NEVER consider this an optional payment. The IRS and state tax agencies frown upon this….and the penalties and interest add up very quickly..
- WHY?: Nobody likes to get nasty grams from the IRS, their State Department of Revenue or the Department of Labor. When liabilities are incorrect in QuickBooks or not paid on time, you will hear from one of the aforementioned agencies and there's a very good chance there will be penalties and interest due.
For more advanced information on how to review and adjust payroll liabilities, look for more posts on the topic here in our blog in the Payroll section.