Once your payroll register is correct and you have created payroll journal entries, the general journal will reflect liabilities owed to vendors, such as your insurance providers, the IRS, state retirement agencies, etc. You can pay these liabilities directly from the Payroll Runs page without going through Accounts Payable.
To pay liabilities, go to Financials Main > Payroll > Payroll Runs. When you click the down arrow next to a payroll run with the status Journal Entries Created or ACH/Paychecks Sent, you can click Liabilities.
You may see three different balances next to each vendor:
Current Liabilities shows how much money is owed to the vendor from the payroll run you are viewing.
Previous Balance shows how much money was owed to this vendor from previous payroll runs but hasn’t been paid yet.
Balance is the sum of current liabilities and the previous balance. This represents the total amount owed to the vendor.
To make a single payment, click Pay Liability next to the vendor name. You will be asked to fill out the following information:
- Date: The date that the transaction will be posted to the General Journal and printed on the check, if applicable.
- Financial Institution Account: The bank account whose assets will be reduced to pay the vendor.
- Payment type: Check or EFT. Checks require a check number. Numbers for EFTs are optional.
The default among will be the total balance, including this payroll run and any previously unpaid payroll runs for this vendor. To make a partial payment, check Use Custom Amount and override the amounts for each liability account.
Mass pay by check
If you need to pay several liabilities by check, you can use the Mass Pay Liabilities By Check button at the bottom. There are two main ways that this differs from the single payment page:
- You can select multiple vendors.
- You enter a starting check number for the first vendor. Subsequent vendors will be paid with sequential checks.