Balance Sheet Report Question Re: Current Liability Item

Posted by Jason Saffer on December 29, 2007, 11:17 am

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I am the Director of a small nonprofit. We use QuickBooks 2007 NonProfit
edition. I have an item showing up on our annual Balance Sheet Report for
2007 for the first time that I think ought not be there. Under Liabilities &
Equity, it now says:

Liabilities

Current Liabilities

Other Current Liabilities

Health Savings Account (6,450)

In 2007, we did set up a Employer-paid Health Savings Account for one of our
staff who has a high deductible health insurance plan. Our organization did
contribute $6,450 (the maximum amount allowed) in 2007. However, I’m not
sure why it’s still showing up as a current liability in the Balance Sheet
Report.

We set up this Employer Paid Health Savings Account in QB as a Company
Contribution Payroll Item, and on the Tax Tracking Type screen of the
payroll item wizard, we choose Health Savings Acct, as per the Help
instructions in QB. When we take a look at the Payroll Item List, we see it
listed as HAS Employer Contribution; when we edit that item, we see that the
Liability Account (company-paid) drop down item chosen is Payroll
Liabilities and the Expense Account is listed as Health Savings Account. QB
tells us that the Liability Account and the Expense Account can be changed
at any time.

We’d like to be able to eliminate this $6,450 from our Balance Sheet Report
for 2007 as a Current Liability, since it has been paid to the staff member
during 2007. Can folks help us figure out how to do that?

Thanks very much.

Jason

Posted by Laura on December 30, 2007, 8:27 am

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>I am the Director of a small nonprofit. We use QuickBooks 2007 NonProfit

>edition. I have an item showing up on our annual Balance Sheet Report for

>2007 for the first time that I think ought not be there. Under Liabilities

>& Equity, it now says:

> Liabilities

> Current Liabilities

> Other Current Liabilities

> Health Savings Account (6,450)

> In 2007, we did set up a Employer-paid Health Savings Account for one of

> our staff who has a high deductible health insurance plan. Our

> organization did contribute $6,450 (the maximum amount allowed) in 2007.

> However, I'm not sure why it's still showing up as a current liability in

> the Balance Sheet Report.

> We set up this Employer Paid Health Savings Account in QB as a Company

> Contribution Payroll Item, and on the Tax Tracking Type screen of the

> payroll item wizard, we choose Health Savings Acct, as per the Help

> instructions in QB. When we take a look at the Payroll Item List, we see

> it listed as HAS Employer Contribution; when we edit that item, we see

> that the Liability Account (company-paid) drop down item chosen is Payroll

> Liabilities and the Expense Account is listed as Health Savings Account.

> QB tells us that the Liability Account and the Expense Account can be

> changed at any time.

> We'd like to be able to eliminate this $6,450 from our Balance Sheet

> Report for 2007 as a Current Liability, since it has been paid to the

> staff member during 2007. Can folks help us figure out how to do that?

> Thanks very much.

> Jason

You say that this "has been paid to the staff member during 2007". Check the
account used when you paid the staff member. It should have posted to the
Liability account and reduced it to zero by year end.

Posted by Jason Saffer on December 30, 2007, 11:37 pm

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Thank you, Laura, for your response. I appreciate your efforts to try and
help me sort this out. I've also wondered if the problem is that the amount
is not posting to the liability account correctly.

Here's more information. Maybe this will be helpful for you to let me know
how you think I can proceed on this:

When I double-click on the Balance Sheet item and call up the Transactions
by Account record, I see that this liability amount is from five payments
that were made to the staff member with the Health Savings Account during
the year. His paycheck is done through Direct Deposit each month.

When I look at the Review Paycheck screen for each of these checks, there is
an item listed in "Company Summary" called "HSA Employer Contribution".
Other items listed in this Review Paycheck section include other company
costs such as Social Security Company, Medicare Company, etc.

When I look at the CheckBook Register, I see that a separate check is
written out for the staff member for the Health Savings Account payment to
him. Under Number/Type, it says LIAB CHK and the account is listed as
Payroll Liabilities.

I really appreciate your input on this. I hope this new info is clear so you
can help me troubleshoot this.

Jason

>>I am the Director of a small nonprofit. We use QuickBooks 2007 NonProfit

>>edition. I have an item showing up on our annual Balance Sheet Report for

>>2007 for the first time that I think ought not be there. Under Liabilities

>>& Equity, it now says:

>> Liabilities

>> Current Liabilities

>> Other Current Liabilities

>> Health Savings Account (6,450)

>> In 2007, we did set up a Employer-paid Health Savings Account for one of

>> our staff who has a high deductible health insurance plan. Our

>> organization did contribute $6,450 (the maximum amount allowed) in 2007.

>> However, I'm not sure why it's still showing up as a current liability in

>> the Balance Sheet Report.

>> We set up this Employer Paid Health Savings Account in QB as a Company

>> Contribution Payroll Item, and on the Tax Tracking Type screen of the

>> payroll item wizard, we choose Health Savings Acct, as per the Help

>> instructions in QB. When we take a look at the Payroll Item List, we see

>> it listed as HAS Employer Contribution; when we edit that item, we see

>> that the Liability Account (company-paid) drop down item chosen is

>> Payroll Liabilities and the Expense Account is listed as Health Savings

>> Account. QB tells us that the Liability Account and the Expense Account

>> can be changed at any time.

>> We'd like to be able to eliminate this $6,450 from our Balance Sheet

>> Report for 2007 as a Current Liability, since it has been paid to the

>> staff member during 2007. Can folks help us figure out how to do that?

>> Thanks very much.

>> Jason

> You say that this "has been paid to the staff member during 2007". Check

> the account used when you paid the staff member. It should have posted to

> the Liability account and reduced it to zero by year end.

Posted by Laura on December 31, 2007, 9:28 am

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It sounds like one of pieces is going to the wrong account. I suspect it is
the payroll setup that is at fault. Run a detailed transaction report that
displays the payroll check and the payments to reimburse the employee. You
need to be able to see what accounts are being impacted with these
transactions. The way it should work is the HSA employer contribution should
be posted to the HSA account and then the reimbursement checks get posted to
the same account.

> Thank you, Laura, for your response. I appreciate your efforts to try and

> help me sort this out. I've also wondered if the problem is that the

> amount is not posting to the liability account correctly.

> Here's more information. Maybe this will be helpful for you to let me know

> how you think I can proceed on this:

> When I double-click on the Balance Sheet item and call up the Transactions

> by Account record, I see that this liability amount is from five payments

> that were made to the staff member with the Health Savings Account during

> the year. His paycheck is done through Direct Deposit each month.

> When I look at the Review Paycheck screen for each of these checks, there

> is an item listed in "Company Summary" called "HSA Employer Contribution".

> Other items listed in this Review Paycheck section include other company

> costs such as Social Security Company, Medicare Company, etc.

> When I look at the CheckBook Register, I see that a separate check is

> written out for the staff member for the Health Savings Account payment to

> him. Under Number/Type, it says LIAB CHK and the account is listed as

> Payroll Liabilities.

> I really appreciate your input on this. I hope this new info is clear so

> you can help me troubleshoot this.

> Jason

>>>I am the Director of a small nonprofit. We use QuickBooks 2007 NonProfit

>>>edition. I have an item showing up on our annual Balance Sheet Report for

>>>2007 for the first time that I think ought not be there. Under

>>>Liabilities & Equity, it now says:

>>>

>>> Liabilities

>>>

>>> Current Liabilities

>>>

>>> Other Current Liabilities

>>>

>>> Health Savings Account (6,450)

>>>

>>> In 2007, we did set up a Employer-paid Health Savings Account for one of

>>> our staff who has a high deductible health insurance plan. Our

>>> organization did contribute $6,450 (the maximum amount allowed) in 2007.

>>> However, I'm not sure why it's still showing up as a current liability

>>> in the Balance Sheet Report.

>>>

>>> We set up this Employer Paid Health Savings Account in QB as a Company

>>> Contribution Payroll Item, and on the Tax Tracking Type screen of the

>>> payroll item wizard, we choose Health Savings Acct, as per the Help

>>> instructions in QB. When we take a look at the Payroll Item List, we see

>>> it listed as HAS Employer Contribution; when we edit that item, we see

>>> that the Liability Account (company-paid) drop down item chosen is

>>> Payroll Liabilities and the Expense Account is listed as Health Savings

>>> Account. QB tells us that the Liability Account and the Expense Account

>>> can be changed at any time.

>>>

>>> We'd like to be able to eliminate this $6,450 from our Balance Sheet

>>> Report for 2007 as a Current Liability, since it has been paid to the

>>> staff member during 2007. Can folks help us figure out how to do that?

>>>

>>> Thanks very much.

>>>

>>> Jason

>> You say that this "has been paid to the staff member during 2007". Check

>> the account used when you paid the staff member. It should have posted to

>> the Liability account and reduced it to zero by year end.

Posted by Jason Saffer on December 31, 2007, 5:56 pm

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Laura,

I think I follow what you're saying. Is there a way for me to change the
five checks written in 2007 so that the HSA employer contribution and the
reimbursement check is posted to the same account? Right now, the checkbook
register shows that the reimbursement check to the employee is set up as a
Payroll Liability. I've changed the Payroll Item for the HSA Employer
contribution for future checks in 2008 so that the Liability Account
(company-paid) is no longer saying Payroll Liabilities but will now be the
same as what's listed for the Expense Account, which is "Health Savings
Account." Does that sound like the right way to set it up. And, how do I
change the five checks that were written in 2007 so that they can be the
"Health Savings Account" rather than the Payroll Liabilities account?

Thanks for your input on this!

Jason

> It sounds like one of pieces is going to the wrong account. I suspect it

> is the payroll setup that is at fault. Run a detailed transaction report

> that displays the payroll check and the payments to reimburse the

> employee. You need to be able to see what accounts are being impacted with

> these transactions. The way it should work is the HSA employer

> contribution should be posted to the HSA account and then the

> reimbursement checks get posted to the same account.

>> Thank you, Laura, for your response. I appreciate your efforts to try and

>> help me sort this out. I've also wondered if the problem is that the

>> amount is not posting to the liability account correctly.

>> Here's more information. Maybe this will be helpful for you to let me

>> know how you think I can proceed on this:

>> When I double-click on the Balance Sheet item and call up the

>> Transactions by Account record, I see that this liability amount is from

>> five payments that were made to the staff member with the Health Savings

>> Account during the year. His paycheck is done through Direct Deposit each

>> month.

>> When I look at the Review Paycheck screen for each of these checks, there

>> is an item listed in "Company Summary" called "HSA Employer

>> Contribution". Other items listed in this Review Paycheck section include

>> other company costs such as Social Security Company, Medicare Company,

>> etc.

>> When I look at the CheckBook Register, I see that a separate check is

>> written out for the staff member for the Health Savings Account payment

>> to him. Under Number/Type, it says LIAB CHK and the account is listed as

>> Payroll Liabilities.

>> I really appreciate your input on this. I hope this new info is clear so

>> you can help me troubleshoot this.

>> Jason

>>>

>>>>I am the Director of a small nonprofit. We use QuickBooks 2007 NonProfit

>>>>edition. I have an item showing up on our annual Balance Sheet Report

>>>>for 2007 for the first time that I think ought not be there. Under

>>>>Liabilities & Equity, it now says:

>>>>

>>>> Liabilities

>>>>

>>>> Current Liabilities

>>>>

>>>> Other Current Liabilities

>>>>

>>>> Health Savings Account (6,450)

>>>>

>>>> In 2007, we did set up a Employer-paid Health Savings Account for one

>>>> of our staff who has a high deductible health insurance plan. Our

>>>> organization did contribute $6,450 (the maximum amount allowed) in

>>>> 2007. However, I'm not sure why it's still showing up as a current

>>>> liability in the Balance Sheet Report.

>>>>

>>>> We set up this Employer Paid Health Savings Account in QB as a Company

>>>> Contribution Payroll Item, and on the Tax Tracking Type screen of the

>>>> payroll item wizard, we choose Health Savings Acct, as per the Help

>>>> instructions in QB. When we take a look at the Payroll Item List, we

>>>> see it listed as HAS Employer Contribution; when we edit that item, we

>>>> see that the Liability Account (company-paid) drop down item chosen is

>>>> Payroll Liabilities and the Expense Account is listed as Health Savings

>>>> Account. QB tells us that the Liability Account and the Expense Account

>>>> can be changed at any time.

>>>>

>>>> We'd like to be able to eliminate this $6,450 from our Balance Sheet

>>>> Report for 2007 as a Current Liability, since it has been paid to the

>>>> staff member during 2007. Can folks help us figure out how to do that?

>>>>

>>>> Thanks very much.

>>>>

>>>> Jason

>>>

>>> You say that this "has been paid to the staff member during 2007". Check

>>> the account used when you paid the staff member. It should have posted

>>> to the Liability account and reduced it to zero by year end.