Generate Liabilities dialog

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Use the Generate Liabilities dialog to generate liabilities for historical payroll data entered as handwritten payroll checks. You can specify the type of data that the checks actually represent to determine how the application should generate the liabilities — as either open or closed.

Choose Actions > Enter Transactions. Enter a handwritten check (to enter historical payroll data), and then click the Generate Liabilities for Handwritten Payroll Checks link.

Fields & buttons

To filter the list of handwritten payroll checks in the Checks grid, select the field by which to filter the list from the drop-down list above the Checks grid.

You must select a check type in this field to continue.

  • 3rd Party Sick Pay. The application generates the liabilities for the checks selected in the Checks grid as open for all employer taxes (FICA-SS, FICA-Med, FUTA, and, in some cases, SUI and Local). It will not generate liabilities for employee taxes (including the employee portion of FICA-SS and FICA-Med).

    Note: If the employee status on a payroll check is "Independent Contractor," the application will not associate the check with any employer taxes and will therefore not generate any liabilities.

  • Handwritten Checks. The application generates all liabilities, both the employee and employer portions, as open. This includes liabilities associated with tax agents and payroll agents. Open liabilities will be available to process tax payments for in the Payroll Liabilities tab of the Print Checks screen or the Manage Impound Payments screen.
  • Historical Checks. The application generates all tax agent liabilities associated with the employee, both employee and employer portions. When you click the Generate button, the Select Liabilities dialog opens to enable you to choose which liability types to generate as open or closed. Closed liabilities flow to the payroll tax forms as payments. Open liabilities will be available to process tax payments for in the Payroll Liabilities tab of the Print Checks screen or the Manage Impound Payments screen. You can also choose to exclude from fund processing any open liabilities that you generate.

    Note: Historical checks do not post to any GL accounts and will not appear in a bank reconciliation. When a manual/handwritten check is changed to a historical check, the application removes the transaction from the general ledger.

The Checks grid includes all handwritten checks for the current client that are available for generating liabilities and that meet the filtering criteria selected in the Filtering fields.

Mark the checkbox next to a check each check for which to generate liabilities. You can right-click in the grid to select all or deselect all checks.

Note: Payroll checks that are marked as cleared in the Actions > Reconcile Bank Accounts screen are not listed in the grid.

After you have selected the checks for which you want to generate liabilities, click the Generate button. The application generates liabilities for 3rd Party Sick Pay checks and handwritten checks. For Historical checks, the application opens the Select Liabilities dialog.

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