Direct Deposit Liability Account

Welcome to our Community, Blondie18! We appreciate you seeking help with your payroll direct deposit liability account mapping. Let me walk you through the process.
 

QuickBooks offers default accounts for recording liabilities and expenses, but also allows you to tailor these accounts to match your unique business accounting needs.

Here are the steps to update your payroll accounting preferences:

1. Go to Setting, then click Payroll settings.
2. Select Edit✎ next to Accounting.
3. Choose Edit✎ to update a specific section.
4. Enter the name of the account, or scroll to select which account the transaction should go to.
5. Hit Save then click Done.

If you have to change the past transaction you can follow this steps.

1. In Settings, go to Payroll settings.
2. Select edit✎ next to Accounting.
3. Choose edit✎ next to Update transactions.
4. Add a Start date and End date.
5. Select Save then Done.

We'll change all accounts except in the Bank Account section.

Please note that QuickBooks has a transaction limit of 200 per date range. If you encounter an error stating 'There are too many transactions to update all at once', kindly reduce the start and end date period to resolve this.

If your payroll transactions are not appearing in the expected account, verify your Chart of accounts settings. You might need to disable account numbering to resolve the issue.

Here's how:

1. In the Settings, select Account and settings.
2. Choose Advance.
3. In Chart of accounts, select Edit✎.
4. Select Enable account numbers slide button to turn it off.
5. Hit Save, then Done.

I added some articles that might help you managing your payroll.

• Set up QuickBooks Online Payroll to pay and file your taxes and forms.
• Automate payroll and taxes for your team in QuickBooks.

I'm happy to assist you in managing payroll in QuickBooks, please feel free to Reply and leave a comment below if you have further questions. We are more than happy to help you!

In the payroll setup I only see Wage and Tax Expenses and Tax Liability.  I know from the Balance Sheet from our old Desktop that it credits a "Direct Deposit Liability" but I don't how to point the Online to that account.  Looking at the last report from our Desktop these are the accounting entries for payroll:

DR Payroll Expenses

          CR Direct Deposit Liabilities

          CR Payroll Liabilities Other (W/H & Taxes)

When paid:

DR Direct Deposit Liabilities

DR Payroll Liabilities Other

          CR Payroll Bank Account

          CR Employer Tax Share

There isn't any place in the payroll setup to point to the "Direct Deposit Liability" account I set up.  I hope that clarifies my question.  Thanks so much.

Thanks for getting back, Blondie18. Let me provide additional information about mapping Direct Deposit Liabilities in QuickBooks Online Payroll.

First, have you already set up a direct deposit account? If you use the payroll feature, this account will automatically be created. If not, you'll need to set one up. You can follow the steps provided by my colleague above. However, if you already have, let's go through some troubleshooting steps to fix this.

Start by logging in to your QBO account using a private or incognito window. Here are the keyboard shortcuts:

• Google Chrome: Ctrl + Shift + N
• Mozilla Firefox: Ctrl + Shift + P
• Microsoft Edge: Ctrl + Shift + P
• Safari: Command + Shift + N

Then, check again for the direct deposit account. If you can find the account, return to your default browser and clear its cache. Alternatively, you may use other supported browsers.

Moreover, I recommend contacting our Payroll Support Team. They can provide comprehensive information and guide you in mapping the correct account for your direct deposit liabilities.

Here's how you can reach them:

1. Click the Help menu in the upper-right-hand corner of QBO.
2. Proceed to the Assistant tab.
3. Type in "contact support" in the chat box and press Enter.
4. Select Contact a human, then click Live Chat or Call me back.
5. Type in a short description of your concern and click Continue.
6. Choose between Callback or Chat.

Additionally, for additional information about managing your payroll accounting settings, you can check out this article: Change your accounting preferences in QuickBooks Online Payroll.

Furthermore, I've added this article as your reference in creating a payroll summary report to manage your employee taxes and contributions: Create a payroll summary report in QuickBooks.

Please feel free to post here in the Community if you have additional questions or concerns regarding payroll mapping in QuickBooks Online. We're always here to help.

We are using the Quickbooks Payroll.   And yes, I did set up a specific Direct Deposit Liabilities account.  I just couldn't see how to map it.  I almost sounds like the payroll processing automatically creates this and won't use my specific account.  Is that correct?  Will it also automatically setup the Payroll Liabilities - Other?   It appears to put the taxes withheld there.   If that is the case, once we run payroll will I be able to edit those "automatic" accounts to assign an account number?  Thanks again.

Hi, Blondie18.

Yes, in QuickBooks Payroll, the software creates default liability accounts such as Direct Deposit Liabilities. All you have to do is map or edit them through the Payroll settings.

Here's how to do it:

1. Go to the Gear icon and select Payroll settings.

2. Click the pencil icon from the Direct Deposit tab.

As for making changes under Payroll Liabilities - Other, you can go over to your employees' profile and choose Edit or Start from the Deductions and contributions tab. 

Moreover, you can contact our Payroll support before running your payroll.

Here's how to reach the Payroll support:

1. Click Help.

2. Go to the Search tab and type 'contact us' in the search box.

3. Hit Contact Us button.

Additionally, this article can help you manage your payroll in QuickBooks: Manage your payroll items in QuickBooks Online Payroll.

Should you have any further questions or clarifications about payroll, feel free to contact us anytime in the comment section. Have a great day.

The first payroll ran and the Direct Deposit Liability account was automatically created.  I simply deactivated the one I created and edited the one QB created with our numbering scheme.   Thanks to all who responded.

It's great to have you back, @Blondie18, and to hear your updates.

We're glad to hear that the process you followed was successful. Please remember that you can always post any QuickBooks-related concerns here. You may also visit our Help Articles page for various guides that can assist you with future tasks.

If you have any other questions about your payroll, please don't hesitate to reach out. We're always here to help. Have a great day!