A payroll was posted to an incorrect cash account. How do I fix that?

Hello there, @arbe.

Let me share with you the steps on how to correct your paycheck that was posted to an incorrect bank account.

Since editing a manually created paycheck is unavailable in QuickBooks Online (QBO), you have to delete and recreate it again. This way, you can correct your records. 

Here's how:

1. Click Workers, then Employees.
2. Select Paycheck List under Run Payroll,
3. Change the date range if necessary. Then, select the paycheck you want to delete.
4. Click Delete.
5. Mark the checkmark box to confirm the deletion and select Delete Paycheck.

Once done, recreate again the paycheck and make sure to select the correct bank. 

For the next steps, you can now print your paychecks, or pay your payroll taxes.

Additionally, you can run some payroll reports in QuickBooks. This way, you can get a closer look at your business's finances and view useful information about your business and employees. 

I'm just a reply away if you have other questions with the QuickBooks Online Payroll. Just add the details of your concerns in this thread and I'll help you out.

Hi Customer, @arbe.

Hope you’re doing great. I wanted to see how everything is going about the paycheck concern you had the other day. Was it resolved? Do you need any additional help or clarification? If you do, just let me know. I’d be happy to help you at anytime.

Looking forward to your reply. Have a pleasant day ahead!

Thanks for the reply.  However, deleting and recreating the payroll seems awfully complicated.  Would it do any harm if I just entered a journal transaction debiting the wrong cash account and crediting the correct account?

Hi RemondO,  Thanks for your response.  However, would it create any general ledger or payroll problems if I just entered a journal transaction debiting the incorrect cash account and crediting the correct account?  Arbe

Good day, @arbe,

Thanks for posting again in this thread about payroll corrections. We normally recommend to delete and recreate the payroll with the updated bank to make sure there isn't any problem during the reconciliation. 

However, you can use journal entries to move funds directly to the correct bank account if the payroll were processed an deposited already. 

But this method must be done with an accountant's approval and guidance. This may affect your financials and past reconciliations, so it needs professional point of view.

If you don't have one, you can find one in your location. See this link to find an accountant: https://quickbooks.intuit.com/find-an-accountant/

If you need further help with this, please let me know in the comment below. Have a nice day!

I'm encountering a similar issue and previously was able to delete and recreate as suggested. QBO now does not allow me to delete these postings. Is there a new solution that can address this hurdle?

Thanks,
Matthew

Let me help with your question about correcting payroll transactions, therealmp. 

Paychecks in QuickBooks Online can only be deleted if it's the most recent or latest transaction. If you can no longer see the Delete button, you can void the paychecks instead. Here's how:

1. Go back to the paycheck that you're trying to edit.
2. Scroll-down to the bottom of the transaction and click Void.
3. Select Yes.

Once done, go to your Payroll Settings window and change the bank account first before recreating the transactions. Let me share these articles as your guide:

• Change Your Payroll Bank Account
• Create Pay Checks in Online Payroll

Alternatively, you can create a journal entry to move the payroll expenses from one bank to another. Here's an article as a guide: Create a Journal Entry in QuickBooks Online.

I'd also like to share these additional articles that you can use as additional guide and reference when running payroll in QBO:

• Run Payroll Reports
• Payroll Tax Compliance Links

Visit us again in the Community have questions or other concerns. I'll be around to jump right back and help you again. Keep safe and healthy always.