Historic Liability Debit (HLD)

The Historical Liability Debit (HLD) is a collection Check makes for all tax liabilities accrued by the employer when they were running payroll on their prior payroll provider, but which have not yet been paid to tax agencies.

When an employer terminates services with its prior payroll provider, that provider will return any unpaid liabilities to the employer bank account – Check must then collect these funds and ensure they are paid to the correct agencies.

Check will collect and remit any liabilities still in an open period. A tax’s period refers to the tax’s payment frequency: monthly, quarterly, or annual.

For example, the open period for a tax with a monthly payment frequency on a February payroll is February. A historical liability falls in an open period if the company start date falls and the tax liability fall in the same period. Here is an example.

The monthly tax liability is not in an open period because the liability and the company start date fall in different months, February and March, respectively. The quarterly and annual liabilities are in an open period because the start date and check date fall within the same quarter and year, respectively.

Check schedules the HLD after an employer’s first payroll approval deadline. It is scheduled for 10 days from the employer’s first payday. It's important that the employer is aware of this date and prepared to have the funds available.

If an employer NSF’s on their first payroll, it will have no impact on the HLD collection. Check will still attempt to collect the amount communicated via Zendesk 10 days after their first payday.

In Console access the company you are looking for. Open the "Documents" tab for the account. Underneath "Tax Documents" is "Setup Documents".

Within Setup Documents you will see the "Historical Liability Debit Analysis Report". This report can be downloaded as a PDF and will show the taxes that comprise the HLD amount. The report will also include the date of the collection.