How to categorize payroll in checking account transactions

Hi, chiming in here. To continue off of the first question...I have made changes under Accounting in Payroll settings BUT how do I fix the transactions for the previous six months? 

The gross pay has all come out of a 3rd checking account (inactive) but the net shows in the bank feed. So paychecks have never been matched to the correct bank account 

Hello there, @Zob-12. Welcome to QuickBooks Community!

There are several reasons why QuickBooks may not recognize to match the paychecks.

It could be that the transaction is older than 180 days or recorded in a different bank account. Another reason could be that the transaction from the bank is a payment/ deposit of two or more open transactions in QuickBooks. It's also possible that the downloaded paycheck transactions were already added to your bank register. 
 

When QuickBooks downloads bank data, it tries to find a match with any QuickBooks transactions already entered. If you agree with the match information shown in the row, click the Match button. This will match with the existing QuickBooks transaction. 

Afterward, you're good to match the paychecks. Then, categorize them.

You can use these articles as additional reference in fixing bank upload errors, categorizing transactions after imported them, and the reconciliation workflow in QBO:

• Learn what to do if you have issues when you manually upload transactions.
• Keep bank transactions organized.

Let me know if you have follow-up questions. I'll be right here to continue to help you. Take care and stay safe always.

Does this option to edit apply to payroll posted manually without the payroll add on through QB?  I need to know if I am posting correctly?  At the end of the year shouldn't the Social Security, Medicare and Withholding accounts equal my 941 reports? Mine doesn't because online payroll tax payments made to the IRS through EFTPS are posted there to.  I'm obviously not manually posting the taxes correctly when posting paychecks.  

Good afternoon, @rftltidwell.

Thanks for joining in on this thread. Allow me to give you some information on this subject. 

We have a guide that can provide some details on how to manually enter payroll paychecks in QuickBooks Online. Review this article and if you're still not sure, I recommend consulting with your accountant on what would be best. They'll be able to give you the best accounting advice for your business. 

If you have any other questions, don't hesitate to ask. I'm only a post away. Have a great day! 

That's not even an option when I tried, I think you may need to update this response.

Thanks for joining the thread, @gusramos23. I'd love to help you with your issue.

To ensure we're on the same page, I'd like to verify which specific steps above that you have tried that isn't an option and you wanted to update the response? By doing so, I can provide the right solution for you. 

In the meantime, here are some resources that you can browse and use as a reference in managing and navigating around your QuickBooks account.

•  Video Tutorials for QuickBooks Online - You can watch videos that can help you perform the most vital features of the program. 
• Small Business Webinars and Trainings - Join our live QuickBooks webinars for more in-depth knowledge on how you can maximize the use of QuickBooks to manage your finances.

I'll be looking forward to hearing back from you. I'll do whatever it takes to ensure your concerns are addressed. Have a great day.

@Catherine_B @ I am having a similar issue. Aside from the account (it seems QB’s set up an additional 2nd checking account which is not an actual bank account), qb’s will not find the matching transaction. It looks like the system categorizes 2 transactions for payroll - gross pay, and employer taxes. The problem is that the $ amounts that come through my account are the net pay, and then the withholding and employer taxes are lumped together. What’s the solution for this?

Thanks for following along with the thread and sharing your concerns, @Cle101. I'll share some insights on your query about your payroll transactions.

As provided by my peer above, we can review your payroll settings to track your transactions. Here's how:

1. Go to the Gear icon and select Payroll settings.
2. Under the Accounting menu, click the pencil icon to edit.
3. You can change the accounts as to where your payroll accounts should be reflected in your Chart of Accounts.
4. If you want to update existing transactions, you can set the date and then Continue.
5. Tick Done to save changes.

If need be, I'd recommend getting in touch with our QuickBooks Online Payroll Support Team for payroll corrections.

Also, with regards to your banking transactions, we can match your downloaded transactions with ones you have already entered. However, if you can't find their match, check out this article here for a list of the possible reasons: Categorize and match online bank transactions in QuickBooks Online.

However, it would be best to seek professional advice from your accountant to ensure the accuracy of your accounts. If you're not affiliated with one, you can utilize our Find an Accountant tool to look for one in your area.

If there is anything else I can do to assist you with QuickBooks, particularly payroll-related activities, you can reach out to the Community at any time. I'll be standing by for your response. Have a great day, and stay safe.

All of my payroll expense categories seem to be set correctly, but my end of year tax reports show $0 in the wages category. The payroll seems to be completely filed under the "Employee Benefits Program." Is there a way to reassign the payroll transactions through the online system? Thank you.