Question

Direct Deposit Liability Account

Forum|Forum|1 year ago
January 4, 2025
2 replies
26 views

We have just migrated to QB Online. I am trying to map the payroll accounts properly but cannot find where to map the Direct Deposit Liability Account. I have set one up with our numbering scheme, but don't see anywhere to map it. Your help would be appreciated. Thanks

Workforce Payroll

T

ThomasJosephD

QuickBooks Team

Welcome to our Community, Blondie18! We appreciate you seeking help with your payroll direct deposit liability account mapping. Let me walk you through the process.

QuickBooks offers default accounts for recording liabilities and expenses, but also allows you to tailor these accounts to match your unique business accounting needs.

Here are the steps to update your payroll accounting preferences:

Go to Setting, then click Payroll settings.
Select Edit✎ next to Accounting.
Choose Edit✎ to update a specific section.
Enter the name of the account, or scroll to select which account the transaction should go to.
Hit Save then click Done.

If you have to change the past transaction you can follow this steps.

In Settings, go to Payroll settings.
Select edit✎ next to Accounting.
Choose edit✎ next to Update transactions.
Add a Start date and End date.
Select Save then Done.

We'll change all accounts except in the Bank Account section.

Please note that QuickBooks has a transaction limit of 200 per date range. If you encounter an error stating 'There are too many transactions to update all at once', kindly reduce the start and end date period to resolve this.

If your payroll transactions are not appearing in the expected account, verify your Chart of accounts settings. You might need to disable account numbering to resolve the issue.

Here's how:

In the Settings, select Account and settings.
Choose Advance.
In Chart of accounts, select Edit✎.
Select Enable account numbers slide button to turn it off.
Hit Save, then Done.

I added some articles that might help you managing your payroll.

I'm happy to assist you in managing payroll in QuickBooks, please feel free to Reply and leave a comment below if you have further questions. We are more than happy to help you!

B

Blondie18Author

In the payroll setup I only see Wage and Tax Expenses and Tax Liability. I know from the Balance Sheet from our old Desktop that it credits a "Direct Deposit Liability" but I don't how to point the Online to that account. Looking at the last report from our Desktop these are the accounting entries for payroll:

DR Payroll Expenses

CR Direct Deposit Liabilities

CR Payroll Liabilities Other (W/H & Taxes)

When paid:

DR Direct Deposit Liabilities

DR Payroll Liabilities Other

CR Payroll Bank Account

CR Employer Tax Share

There isn't any place in the payroll setup to point to the "Direct Deposit Liability" account I set up. I hope that clarifies my question. Thanks so much.

G

GenmarieM

QuickBooks Team

Thanks for getting back, Blondie18. Let me provide additional information about mapping Direct Deposit Liabilities in QuickBooks Online Payroll.

First, have you already set up a direct deposit account? If you use the payroll feature, this account will automatically be created. If not, you'll need to set one up. You can follow the steps provided by my colleague above. However, if you already have, let's go through some troubleshooting steps to fix this.

Start by logging in to your QBO account using a private or incognito window. Here are the keyboard shortcuts:

Google Chrome: Ctrl + Shift + N
Mozilla Firefox: Ctrl + Shift + P
Microsoft Edge: Ctrl + Shift + P
Safari: Command + Shift + N

Then, check again for the direct deposit account. If you can find the account, return to your default browser and clear its cache. Alternatively, you may use other supported browsers.

Moreover, I recommend contacting our Payroll Support Team. They can provide comprehensive information and guide you in mapping the correct account for your direct deposit liabilities.

Here's how you can reach them:

Click the Help menu in the upper-right-hand corner of QBO.
Proceed to the Assistant tab.
Type in "contact support" in the chat box and press Enter.
Select Contact a human, then click Live Chat or Call me back.
Type in a short description of your concern and click Continue.
Choose between Callback or Chat.

Additionally, for additional information about managing your payroll accounting settings, you can check out this article: Change your accounting preferences in QuickBooks Online Payroll.

Furthermore, I've added this article as your reference in creating a payroll summary report to manage your employee taxes and contributions: Create a payroll summary report in QuickBooks.

Please feel free to post here in the Community if you have additional questions or concerns regarding payroll mapping in QuickBooks Online. We're always here to help.

S

SirSmeds

We just did our first payroll with direct deposit. The transactions seem to have posted to two different direct deposit accounts. All the employees but one posted to one direct deposit liability account for both credit and debit. However, the other employee posted a debit to one account with the other employees; however the credit was posted to a separate direct deposit account. I am unable to find a way to have the credit moved to the other liability account to offset the debit.

E

EmanE17

QuickBooks Team

Hi SirSmeds, you can create a Journal Entry (JE) to transfer the credit from the incorrect Direct Deposit (DD) liability account to the correct one, as payroll bank transactions cannot be automatically remapped once they have posted.

Before creating the JE, let's first verify your current payroll accounting preferences. Navigate to the Gear icon, select Payroll Settings, and then find the Accounting section. Click the Pencil icon to check which direct deposit liability account is currently mapped. This account should align with where future transactions will be posted.

After completing the verification process, you can proceed to create the JE. Navigate to + Create and select Journal Entry. Debit the incorrect DD liability account to remove the credit. Credit the correct DD liability account where the debit has already posted. You can then enter the amount and add a description. Once done, click Save and close. This will properly offset the debit without affecting the actual direct deposit that has already cleared.

To ensure the accuracy of your accounts in this entry, I recommend reaching out to an accountant. Their expertise in accounting can help you select the appropriate accounts, ensuring that everything is correctly represented in your books.

If you have any further questions about QuickBooks, please feel free to contact us.

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