thread Re: Quickbooks Liabilities setup with payroll in Staff & Payroll

Quickbooks Liabilities setup with payroll

Chiroremedy — Sun, 21 Sep 2025 06:29:46 GMT

Im guessing I missed a thread in here somewhere, but I am having an issue where my Tax Liability is off because square doesn't seem to be sending over payroll tax liabilities but it does register when those taxes are paid.

Is there a way to map this properly so both the liability and those payments are transferred over?

Re: Quickbooks Liabilities setup with payroll

TheRealChipA — Tue, 14 Nov 2023 19:15:14 GMT

Hi @Chiroremedy. I think there might be some confusion here. The Quickbooks integration with Square only imports (per QB’s description) “Sales, tips, discounts, taxes and fees.” Square does not send them to Quickbooks. Quickbooks requests those and does with them what it will.

The reason that you are seeing the payments in Quickbooks is probably because QB is downloading those cleared payments for your bank and books/categorizing them. That has nothing to do with Square Payroll, other than the fact that Square Payroll initiated those payments for you.

Otherwise, there is no way for Square to automatically make payroll/liability entries in your QB. When I run payroll each week, I use the payroll summary report to create the necessary journal entries for the liabities side of things, and I also book the payment/withdrawl transactions so that when QB imports those bank transactions, it matches with them automatically.

This is pretty much the standard procedure for posting payroll to our accounting systems, unless we use our accounting system’s built-in payroll software. The only way that I know of for you to have automatic payroll journal entries posted to your QB would be for you to use QB Payroll instead of Square Payroll.

Let me know if you have any other questions.

Re: Quickbooks Liabilities setup with payroll

Chiroremedy — Wed, 15 Nov 2023 17:43:28 GMT

I know on Square you can link it with Quickbooks and you can map several areas to automatically log over into quickbooks. However, the Liability for taxes doesn't show up, just the actual payment that goes out. I was hoping I just needed to change the mapping around to get it to work properly, but thats probably not the case. Ill keep playing with it and hopefully there is a easier function than having to manually do it everytime.