Greetings, PRH.
Thanks for coming back to the Online Community. I'd be glad to give you some information about what account to use for payroll checks.
Typically we would use the payroll expense account to track paychecks. However, If you're unsure if this would work for your business I recommend reaching out to an accountant.
Once you have the information handy, let's go ahead and change the category. For the detailed instructions, follow the steps below:
- Go to Banking on the left panel.
- Choose the Banking link in the upper left, then select the appropriate bank.
- Mark the box of the paycheck you’re working on.
- From the Batch actions drop-down menu, select Modify Selected.
- In the Modify Selected dialog box, click on the drop-down for Category and select Payroll Expenses.
- Click on Apply.
For future reference, I've added a link that will guide you on how to asssign, categorize, edit, and add downloaded banking transactions.
That should do it. The transaction is now tracked to the correct account, and your records are in order.
Keep me posted if you have additional questions about payroll. I'll be around to answer them for you. Wishing you the best.