My payroll expenses are so much lower than Cost of Direct Labor, is this normal?

Hello there., @tnich1960.

You'll want to open the payroll item settings and ensure to post all payroll expenses to the right account. I'd be glad to guide you how.

In your QuickBooks Desktop (QBDT):

1. Go to the Lists menu.
2. Select the Payroll Item List.
3. Double click the item.
4. Click Next to open the Agency for employee-paid liability section.
5. Under the Liability account field, select the appropriate account from the drop-down.
6. Once done, click Next until you can select Finish.

For more details, feel free to check this article: Edit a payroll item.

I'd also suggest getting in touch with your accountant for further guidance on what account to choose. This way, we'll ensure the accuracy of your accounts after making these changes.

You can also check this article for reference in case you want to invite your employees to view their paycheck online (read the Invite your employee section): Set up QuickBooks Workforce for your QuickBooks Desktop.

Should you need more help managing your payroll, you can always contact us anytime. We're always here to back you up. Take care!