Creating and managing expense categories in QuickBooks Online Advanced Payroll
The Expense Categories page in the Payroll Settings is used to define the various employee expense categories used by your business.
In order to add an expense category:
Go to Payroll Settings, Expense Categories.
Enter the name of the expense category.
Enter an External Id for the expense category, if required.
To edit an expense category, click on the name of the category you want to edit. This will expand the details of that category for editing. Make the necessary changes and click Save when you're done.
You are also able to delete expense categories from this screen by hovering your mouse over the category that you want to delete, and clicking on the red circled cross that appears. Note that you cannot delete expense categories that are in use.