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duncan7
Level 1

Matching banking transactions for payroll

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.

3 REPLIES 3
Adrian_A
Moderator

Matching banking transactions for payroll

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.

 

I'll be around if you still need my help.

duncan7
Level 1

Matching banking transactions for payroll

Hi,

Thanks for your reply.

The issue I am having is that there is no 'Payroll Clearing' account, which all of the solutions I have found mention.

There is a 'Payroll Expenses: Wages' account, but that then asks for the VAT rate, which I could set to zero, but just want to make sure that is correct before doing it.

Thanks

Ashleigh1
QuickBooks Team

Matching banking transactions for payroll

Hello Duncan7, 

 

Thanks for coming back to us, 

 

If you dont have a payroll clearing account you can always create it in the chart of accounts.