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Level 1

Paying staff in Cash Using Quickbooks Online Stardard Payroll

I have just set up payroll for the first time (using Standard Payroll in Quickbooks Online). My staff are paid weekly in cash, so ideally I'd like the payroll payments to come out "Undeposited Funds" (we're a cash-based business).

 

I understand this isn't possible, so for the journal entries, Quickbooks is picking a random bank account that we don't use anymore. For the time being, I'm going into the journal entry and changing the random bank account to "undeposited funds" which seems to work. But I was wondering if there was a more efficient way of doing it? 

 

Many thanks

Laura

Solved
Best answer April 27, 2020

Accepted Solutions
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QuickBooks Team

Paying staff in Cash Using Quickbooks Online Stardard Payroll

Hi LauraF83

 

You could create a cash on hand account from within the chart of accounts, select accounting > chart of accounts > new > select the cog/gear icon in the top right hand corner of the screen > account and settings > payroll > Journal mapping > select cash on hand account created above > save

When you run payroll the net amounts will appear as if they have been paid from the cash account, which is correct although you will obviously have to transfer money into this account from the undeposited funds account to cover the costs of the wages and so that the cash on hand accounts is showing  as zero.

View solution in original post

2 REPLIES 2
Highlighted
QuickBooks Team

Paying staff in Cash Using Quickbooks Online Stardard Payroll

Hi LauraF83

 

You could create a cash on hand account from within the chart of accounts, select accounting > chart of accounts > new > select the cog/gear icon in the top right hand corner of the screen > account and settings > payroll > Journal mapping > select cash on hand account created above > save

When you run payroll the net amounts will appear as if they have been paid from the cash account, which is correct although you will obviously have to transfer money into this account from the undeposited funds account to cover the costs of the wages and so that the cash on hand accounts is showing  as zero.

View solution in original post

Highlighted
Level 1

Paying staff in Cash Using Quickbooks Online Stardard Payroll

Thank you John, I will do that!