Why does QB have payg payable and a payg witholding payable in the chart of accounts? In the pay run payg is allocated to payg payable account but the bas journal is allocated against payg withholding payable so you end up with a debit in 1 account and a credit in the other. They dont match up without another journal
Thanks for posting in the Community, Von-1.
The PAYG Payable and PAYG Withholdings Payable are default accounts when the payroll feature is enabled, and you've set up your GST settings in QuickBooks Online.
Let's check also your default payroll chart of accounts to see if they are mapped to the correct account. Here's how:
If you are seeing an incorrect figure in your payroll journals, let's check on the account and tax code used on them. Here's how:
Make corrections on the payroll journal to correct the posting of the accounts.
For reference you can also check this link to learn more about the default accounts for payroll: Set up and configure payroll chart of accounts.
When I orginally set up payroll the default account for PAYG was PAYG Liability, After I completed the BAS the journal created By Quickbookds allocated the PAYG Payable to PAYG Withholdings Payable. Then I changed the payroll chart of accounts so that PAYG is now allocated to PAYG Withholdings Payable. This now allows the PAYG Withholding Payable account to get to zero instead of an amount in PAYG Payable and a credit amount in PAYG Witholdings Payable for the same amount.
Can you confirm that PAYG Withholdings Payable is the correct account for PAYG in the payroll defaults.
Hi Von-1,
Thanks for getting back to us. Yes, that is the correct account for allocating PAYGW Withholdings. After finalizing a pay run the payroll journal will show a Credit to the PAYG Withholdings Payable account.
Hi Von-1,
How did you change the payroll chart of accounts so that PAYG is now allocated to PAYG Withholdings Payable. In my case PAYG Withholdings Payable is not an option to choose from under PAYG Liability Account dropdown selections.
Great to hear that you figured it out, Dengster! I'm glad you were able to add the PAYG Withholdings Payable account using the Import Accounts function in the Payroll tab> Payroll Settings> Chart of Accounts. It's always satisfying to find a solution.
For your reference, you may also check this article: Set up and configure payroll chart of accounts.
If you have any more questions or need further assistance in the future, feel free to reach out. We're here to help!
Thanks for keeping us in the loop.
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