How do I edit employee wage expense manually?

noraknotes · ‎October 16, 2021

Using QuickBooks Online. I have employees whose pay is split into various expenses and it's different for each employee. Their current pay just all goes into "Payroll: Wage Expense" and I want to change it manually for each employee as they've been paid already.

I tried running a Statement of Activities and clicking on their respective journal entry but it's not editable. Is the only way to edit them to create a manual journal entry to reclass them?

LieraMarie_A · ‎October 16, 2021

I've got you covered, @noraknotes. I'll help you move employees' wages manually.

The only way to change the categories for old paychecks is by creating an adjustment entry. I recommend consulting an accountant on what specific accounts to use to record the transaction to ensure the accuracy of your books. To make sure the amounts are accurate, you can run a payroll report for reference.

Here's how:

Click + New on the left panel.
Select Journal Entry.
Under the Journal date, enter the paycheck date.
Enter the necessary info.
Select Save and close.

For future payrolls, you can edit your payroll account preferences. This way, employees' wages are posted to their own expense accounts.

Here's how:

Go to the Gear icon, then select Payroll Settings.
Go to the Accounting section and click the Pencil icon.
Click the Pencil icon next to Wage Expenses.
Select the best option that suits your needs and choose the accounts to track your employees' wages.
Click Continue, then Done.

I've included some articles for additional information about viewing and editing your current payroll preference:

Be sure to get back to us if you need more help with setting up your payroll preferences. I'd be glad to help you out. Take care and have a good one.

View solution in original post

LieraMarie_A · ‎October 16, 2021

I've got you covered, @noraknotes. I'll help you move employees' wages manually.

The only way to change the categories for old paychecks is by creating an adjustment entry. I recommend consulting an accountant on what specific accounts to use to record the transaction to ensure the accuracy of your books. To make sure the amounts are accurate, you can run a payroll report for reference.

Here's how:

Click + New on the left panel.
Select Journal Entry.
Under the Journal date, enter the paycheck date.
Enter the necessary info.
Select Save and close.

For future payrolls, you can edit your payroll account preferences. This way, employees' wages are posted to their own expense accounts.

Here's how:

Go to the Gear icon, then select Payroll Settings.
Go to the Accounting section and click the Pencil icon.
Click the Pencil icon next to Wage Expenses.
Select the best option that suits your needs and choose the accounts to track your employees' wages.
Click Continue, then Done.

I've included some articles for additional information about viewing and editing your current payroll preference:

Be sure to get back to us if you need more help with setting up your payroll preferences. I'd be glad to help you out. Take care and have a good one.

1108 6953 7 · ‎October 20, 2021

Prior to the last update Quickbooks allowed employers to edit the employees payroll which was a very good process. Since the last update in order to correct payroll you must contact quickbooks to correct which is cumbersome and has taken away the employer rights to control their payroll with involving their call center. They should put control back in the employers hands. This seems to be away for them to charge more on the monthly rates.

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How do I edit employee wage expense manually?