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Level 2

QBO Payroll Clearing Account - How can I clear it to be zero?

Currently, my payroll clearing account is showing a negative amount (eg. -$10,000.00). There are multiple journal entries from 2016 to 2019. 

 

How do I zero out these negative balances? 

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QuickBooks Team

QBO Payroll Clearing Account - How can I clear it to be zero?

Hello, @easybookkeeping123.

 

The payroll clearing account is use to enhanced security and for more efficient reconciliations and analyses. You can create a journal entry to clear out the negative amount in your clearing account.

 

Here's how:

  1. Go to the Plus Icon (+).
  2. Select Journal Entry.
  3. Enter the date and the journal entry number.
  4. Fill out the fields to create the journal entry.
  5. Click Save and Close.

You can refer to this article for more detailed steps: Matching payroll in QuickBooks Online.

 

Also, I'd recommend consulting with your accountant or tax-professional so you'll be guided in clearing out your payroll clearing account.

 

Let me know if you have other questions. I'm always here to help.