Employees and payroll

Let me help you with this, @ondemandoffice.

You can set up an expense and liability accounts for your payroll expenses and liabilities.

Let me show you how:

1. From the left menu, select Accounting, then Chart of Accounts.
2. Click New.
3. Select an Account type and Detail type.
   
4. Enter a Name that describes the account.
5. Click Save and Close.

Then, use a journal entry to record the paychecks processed by the third-party payroll service. Feel free to read through this article for your guidance: Record payroll transactions manually

Let me know if there's anything else you need and I'd be glad to help.