Double Recording

UncertainRecords · ‎May 27, 2022

Instead of using the business bank account, we decided to open up a few other accounts back in December so we use;

1.Business Acct (Bills and Job Supply Purchases)

2. Payroll Wages (Used to pay Net pay only)

3. Payroll Taxes (Used to pay Employer & Employee Taxes only)

Since paying Payroll Wages in a different account, my Business account balances have been way off (in the thousands) so I figured out that QuickBooks had to manually update what account the Wages were being paid out of. I didn't get that changed until April 2nd, but have been using Payroll Wages account since Jan. 1st. I am seeing where the payroll transactions are still showing up in Business Account, but aren't reconciled as they don't show up on the actual bank statement; and these same transactions are appearing in the payroll Wages account and are reconciled. My thought process is these transactions are being double recorded in both accounts. Can anyone tell me if this is in fact what is happening? If so, what would be the correct way of recording a reverse in these amounts in the Business account without voiding the checks? I am also wondering if when I make my Payroll Tax payments, if it is double recording those as well in the Payroll Wages and Payroll Tax Payments. Hopefully this makes sense. Thanks for the help in advance!

Archie_B · ‎May 28, 2022

Thank you for reaching the Community, UncertainRecords.

I'm here to share what I know in managing your payroll settings and how QuickBooks Online records your payroll transactions.

QuickBooks Online Payroll set up default accounts for you to easily track your payroll liabilities and expenses. If you're not sure which payroll account type to use you can check out this article: Change your accounting preferences in QuickBooks Online Payroll.

Once you're able to set up the correct account for your payroll transactions, you can also update the payroll accounting preferences and past transaction.

Like this:

Go to Settings ⚙, then Payroll settings.
Click on Edit ✎ next to Accounting.
Select Edit ✎ to update a specific section.
Choose which account the transaction of the specific payroll item should go. Then select Continue.

To change past transactions:

Select Edit ✎ next to Want to update existing transactions.
Add a Start Date. We'll change all accounts except in the Bank Account section.

Then, reconcile your accounts again to make sure your books are accurate. Use this link as your reference: Reconcile an account in QuickBooks Online.

You're always welcome to post again for other payroll-related concerns. I'll happy to assist. Have a good one!

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