Hi there, @david176.
Thanks for visiting the Community. You can create a journal entry (JE) for paychecks you've created outside QuickBooks showing payment via PayPal. Please note that this will not create the data you'll need for your employee's W-2's as JE is for recording purposes only.
- Go to the + New menu, then select Journal Entry.
- Enter the paycheck date in the Journal date field.
- On the first line, select Payroll Expenses: Wages for the account, then enter the amount as a Debit.
- Enter the employer payroll taxes on the second line. Choose Payroll Expenses: Taxes for the account, then enter the amount as a Debit.
- On the Credits side, enter the amounts for all employer taxes paid, then select the proper account to associate the taxes paid such as:
- Payroll Liabilities: Federal Taxes for 944/941 taxes. You can also combine Federal Income taxes, Social Security Employee, Social Security for Employer, Medicare for Employee, and Medicare for Employer.
- Payroll Liabilities: [State] SUI/ETT Liability for the State unemployment taxes.
- Payroll Liabilities: [State] PIT/SDI for the State income taxes.
- Payroll Liabilities: Federal Unemployment (940) for FUTA.
6. Select the PayPal account on the next line, then enter the amount of the net wage as Credits.
7. Select +Add new under the Name column to add the employee's name.
8. Click Save when done.
To make sure your books are accurate, I'd also recommend consulting an accountant.
For more detailed steps and insights, check out this help article: Manually enter payroll paychecks in QuickBooks Online.
Should you need to add this employee on your payroll on the next pay period, read through this article to guide you more: Add, edit, or inactivate an employee.
Feel free to visit again should you need anything else about QuickBooks. I'd be delighted to be your guide.