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Offset benefit liabilities in QuickBooks Desktop

Because Gusto does not take any money for benefits or deductions, we include a mapping for a benefit or deduction expense and a benefit or deduction liability. This will create accounts within your accounting software that accrue an amount owed for the benefit or deduction over time.

When the benefit or deduction is then paid to the requesting party, you can offset your liability account and zero out the accrued amount owed.

Important: When money is pulled for an FSA or commuter benefit, before it is deducted through payroll make sure you don't create an expense but rather establish a receivable. It will be expensed in payroll when the amount is deducted. At that point with the deduction, then reduce the receivable.

Option 1: Create an entry from the bank debit (created by paying the benefit or deduction) and assign that entry to the liability account to offset.

  1. Sign in to your Quickbooks Desktop Account.
  2. Go to Banking and select your Bank Feed.
  3. Locate the debit from your benefits provider.
  4. Click the box to the left-hand side of the debit.
  5. Select the liability account from the drop-down menu under Account.
  6. Click Batch Actions - Add.

Option 2: Create a check and associate that check with the liability account to offset.

  1. Sign in to your Quickbooks Desktop Account.
  2. From Banking, select Write Checks.
  3. Manually enter the payment information, and select the liability account from the drop-down menu under Account.
  4. Finishing creating the bill.
  5. Click Save.