matched benefits and liability accounts

Hi, Pristine Clean. I can assist you in managing your payroll benefits and liabilities in our accounting system by setting up the correct categories for your transactions.

If the journal details are from ADP, you can contact their designated support to review the accounts and categories for posting benefits and deductions.

If you've manually tracked journal entries in QuickBooks Online (QBO), your accounts and the posting of your entries under the Debit or Credit column can affect this behavior.

To fix this, I suggest reviewing your accounts through the Chart of Accounts and ensuring that the types and setups are correct. 

1. Sign in to your QBO account.
2. Go to the Gear icon, then tap on Chart of Accounts.
3. Double-check your accounts from there.

You may run through the details from our self-help article for more hints on creating journal entries for paychecks created outside of QuickBooks: Manually enter payroll paychecks in QuickBooks Online. The same resource will show you how to set up manual tracking accounts and includes a sample paycheck for reference.

Additionally, you may consult an accounting expert for accurate classifications. An accountant can also check your journals and update the information if necessary. 

On the other hand, you can also utilize our payroll products to ease the process of paying your employees in the future. 

You can reach out again anytime if you have other concerns about payroll benefits and deductions by leaving a comment below. I'm here and ready to lend a helping hand.

That’s the problem, I’m not sure how to set up the chart of accounts and which liability or expense accounts to have for this specific situations  

@pristine Clean  

"example. employee A elects to partake in a benefit that cost $100/mo with employer paying 50%. Each month $50 is deducted from the paycheck and recorded via journey entry from ADP into a liability account. but each month my bank account pays the vendor $100. if I deduct the amount form the liability it now has a negative $50."

In this example, in addition to the $50 employee deduction, you will need to add a $50 debit for the employer's match (expense) along with a $50 credit to the liability account, bringing the liability account to $100.  Then, when you pay the $100 from your bank account, it will zero out the liability. 

"second benefit is set top the exact same except its 100% employee paid, however I also have said befit so again for example. benefit costs $100. each month $100 is deducted from employee and journal entry is recorded to liability account. however since I also have said benefit (I am owner draw not payroll) each month $200 is deducted from my back account and there again is a discrepancy not the liability amount"

I'm not sure I'm following this.  In the first example, there is $100 in the liability account ($50 employee payroll deduction + $50 employer expense match).  If you add $100 from an additional employee payroll deduction, you now have $200 in the liability account which will zero out with the $200 payment.  Sounds straightforward unless I'm missing something.