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bgreenwell
Level 1

Manually categorize payroll transactions

I need to manually categorize the last month's payroll since we changed the bank name, we have to start over.
1 Comment 1
jamespaul
Moderator

Manually categorize payroll transactions

Hello, bgreenwell,

 

I take that you're trying to correct those payroll transactions under a different bank account. We're unable to do it directly. However, there are two ways to do this manually and I'm happy to show you the steps. 

 

In this case, there's no need to start over. Instead, you'll want to create a journal entry. Generally, you would account for all the employee's total paycheck amount then transfer it to the correct account. Then, zero it out from the original account with the journal entry. 

 

Simply click the + New icon, then choose Journal entry

 

Using the journal entry can be tricky, so I'd recommend consulting with an accountant before doing this. They'll guide you in choosing the right accounts for debit and credit sides and ensure your books are accurate. I also recommend running the payroll reports so you can be guided on the total amount. 

 

Another option is to merge the bank account. This is viable if you don't want to use the original bank account and have a few transactions to manage. This article has the detailed steps on how to do it: How to merge accounts, customers, and vendors.

 

After taking care of the payroll transactions, you can change the bank account where the future paychecks will be recorded under. Here's how: 

 

  1. Click the Gear icon, then select Payroll settings
  2. Under Preferences, choose Accounting.
  3. Change the Bank Account to the correct one.
  4. You can also recategorize where the payroll expenses will be recorded under. 
  5. Once done, click OK

 

changebank1.PNG

 

The tax time is almost here. If you need assistance managing your payroll taxes, I'd recommend checking out our payroll articles. They can also help you manage your employees. 

 

I'm still up to address other concerns you might have. Just post them here, and I'll reply as soon as possible. 

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