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Intuit

Set up Payroll account preferences

When your Payroll service is set up, our system automatically creates default accounts you can record your payroll liabilities and expenses to. If you want to have different accounts for tracking these transactions, your first step is to go to the Chart of Accounts window in QuickBooks Online to set them up.

To set up a Payroll account

  1. Select the Gear icon at the top, then Chart of Accounts.
  2. Select New in the upper right corner of your screen.
  3. Choose Expenses from the Account Type drop down menu.
  4. Select Payroll Expenses from the Detail Type drop down menu.
  5. Type in the name of the Payroll expense or liability account in the Name field.
  6. Select Save and Close.

Wage Expense

You have three options for Wage Expense tracking. Make sure that you select the appropriate option when setting up account preferences:

  • All employee wages goes to the same account.
  • I use different accounts for different groups of employees.
  • I use different accounts for different wages.

Tax Expense Tracking

You have three options when setting up accounts for your Tax Expense:

  • Employer taxes for all employees goes in the same account.
  • I use different accounts for different groups of employees.
  • I use different accounts for different groups of taxes.

Fringe Benefits

The account association options for your employee Fringe Benefits can be found under the Other Liability and Asset Accounts section.