QB Issue Resolution:
You won’t see Payroll Liabilities on the P&L, because the P&L is only one of at least 3 reports you should be using. The P&L is only One Part = income and expense. The Liability accounts are part of the Balance Sheet. You also run the Statement of Cash Flows. These three reports work together to give you the full picture. You will see they relate, because the reports run for the same timefram all show the same Net Income.
P&L = Income minus Expense. This contributes to the health and wealth of the business and is seen as Equity in the Balance Sheet.
Balance Sheet = what you Own, what you Owe, and the Equity is the “difference” or Net Assets. That’s why the bottom line of the P&L also shows as part of Equity.
Here is an example for payroll:
Gross Wages + employer share of taxes = expense.
However, the Gross wages is Not what the employee got to Take Home. They had deductions, which you are holding to send in, on their behalf. That makes it Your Liability = you are Liable to send on funds you took from that employee’s pay. Additionally, the Emploer share of tax expense that is posted but is not yet Paid, is offset as Liability = To Pay Later. That’s why you pay the employee + the employer share of taxes From Liability. That isn’t Expense; that is called Cash Flow = you cleared the liaiblity by spending funds. The Funds are Expenditure, not Expense.
2. Paying it “electronically” = Paperless check. You still need to Do The Bookkeeping in QB, by using the payroll function to Pay Liabilities, to show you Paid it. Instead of a real check #, you put “EFT” for the Check #.
Resolution for Issue 'Payroll Liabilities on Profit & Loss' available: Yes (Solved).
Source: Intuit Community forum.
Payroll Liabilities on Profit & Loss: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.Support for business
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