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Bangkok
Level 1

Closing a payroll account

I need to close an old payroll account but I have several outstanding payroll checks how do I clear them or make a journal entry?

3 Comments 3
JessT
QuickBooks Team

Closing a payroll account

Hi Bangkok,

 

We're here to assist you with your concern. However, can you please explain more details about these outstanding payroll checks (paychecks) and why do you need to clear them out before canceling your payroll account? I mean did you process a direct deposit payroll in advance? Thanks in advance.

Bangkok
Level 1

Closing a payroll account

Checks were issued in 2018 and never cashed by former employees, have not been able to get a hold of the employees to issue replacements.  We have closed the account for other reasons.  I need to transfer the funds to the new account but the outstanding balance is not matching to the what the actual balance was.

Joesem M
Moderator

Closing a payroll account

Thanks for providing additional details about your concern, @Bangkok. Allow me to chime in and share ideas on how to transfer the funds.

 

You can void the check created and deposit the amount to the new account. Before doing so, voiding changes the amount of the transaction to zero but keeps a record of the transaction in QuickBooks.

 

To void a check, open the check and select Void from the Delete drop-down menu. See the screenshot below.Capture.PNG

 

Once done, you can now deposit the amount to the newly created account. Here's how:

 

  1. Go to the Banking menu and select Make Deposits.Capture.PNG
  2. Hit OK on the Payments to Deposit window.Capture.PNG
  3. Choose the account where you want the money deposited.
  4. Enter Date.
  5. On the Received From column, select the vendor.
  6. Select the new account under the From Account column.
  7. Fill in the Chk No and Amount fields.
  8. Hit Save & Close.Capture.PNG

 

For more information, check out the following articles:

 

 

Also, in case you need to fix discrepancies balance upon reconciling you can visit these articles for reference: 

 

 

I'm still here to help if there's anything else that you need. Just leave a reply below and I'll get back to you. Have a lovely day ahead!

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