Hi tim-loftus,
Do you know if you are using the standard or the advanced version?
If you are using the standard version the payroll journal which is automatically generated will create the expense to your bank account for you. The account which the wages post to can be viewed or changed by going to the Cog Wheel > Account and Settings > Payroll > Journal Mapping.
In the advanced payroll, the journal will automatically post the wage expenses to the Payroll Clearing account which is a liability account. You can then create the expenses manually, by selecting the Payroll Clearing account under 'Category' on the expense transaction, which will reduce the liability account to zero once you have recorded all wages.
Alternately you can edit the journal in the advanced payroll so that it posts directly to the bank, by going to Payroll Settings > Chart of Accounts > Edit the default payment account from Payroll Clearing to your chosen bank.
Thanks
