Instead of categorizing the bank expense as Cost of Labour, you can match it to the wage transactions automatically made by QuickBooks Online (QBO) after payroll to prevent duplicate entries, Vicki.
Since you categorized the transactions from the bank page and they’re now in the Posted tab, I recommend undoing the categorization to move them back to the Pending tab so you can match them. Here’s how:
- In the Bank Transactions page, click Posted.
- Find the entry you want to fix and select Undo.
- Go back to the Pending tab and hit Match.
- Choose the correct transaction from the list of matches, or manually look for the appropriate one.
To automatically categorize your payroll expenses as Cost of Labour moving forward, you can update your payroll settings. Here's how:
- In the Gear icon, click the Payroll settings.
- Go to the Accounting tab and select the Pencil icon.
- Click the Pencil icon from the Wage Expense, then choose Cost of Labour as the Wage Account.
- After that, hit Save and Done.

Please let us know if you have more questions. We'll be here to help.