How do I match the banking transactions for paying an employee to the journal entry created from payroll? I have seen another post saying use the 'Payroll Clearing' account but that account does not exist.
There are ways on how we can match the banking transactions and the Journal Entry from payroll, duncan7.
If you're using the Standard Payroll, every time you run payroll, there will be a liability (Payroll Clearing) account. This stands for a payable to your employee's wages.
If you are using this account, you can record an expense transaction manually for each employee which will then allow you to match to the individual transactions in the bank (on the expense, enter the employee under Payee, the date this was paid, the bank account, and in the Category field select the Payroll Clearing account.
If you have QuickBooks Online Advanced Payroll, you will need to map the accounts.
Once you've set up the account, all your payroll will be put under the account you selected.
Afterward, you're good to match the paychecks. Then, categorise them.
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