My payroll is being recorded twice. Once under payroll expenses showing net and then lines for payroll taxes and then again under wages (Gross). How can I fix this?

Hello there, dmiller4,

When you create payroll in QuickBooks, the system distributes the amounts to its respective accounts. These accounts are created to track your payroll liabilities and expenses.

Your payroll is not recorded twice, it's just added to the accounts for tracking. You can view your payroll accounting preferences with these steps:

1. Click the Gear icon.
2. Select Payroll Settings.
3. Select Preferences, then click Accounting Preferences.

You can learn more here: Payroll accounting preferences.

Stay in touch with me if you have additional questions. I'll be more than willing to help.

My profit statement would differ in opinion.  As I stated above I have a line being subtracted that says wages and then I have lines that say Payroll expenses and also had the breakdown of taxes.  See screenshot.

Good Evening, @dmiller4. 

Thank you for providing feedback and also a screenshot of the issue. 

After reviewing this thread and looking over the screenshot you provided, it looks like you've accidentally switched payroll accounts and not used the Back Date feature. This means that all your previously ran payroll is recorded in one account and your recently processed payroll is being recorded in a new account. 

My colleague @MaryLurleenM has provided the correct information above to get you back to business. Going to your Payroll Account Preferences is where you can go to view and edit your payroll information. It's also where you can see which Expense and Liability accounts are affected when you create a paycheck. 

The change of settings affects future transactions. Since this is affecting your reports, you can backdate these changes for all transactions to the beginning of the year. 

If you have any more questions or concerns, I'm always a Reply away. Have a wonderful rest of your day! 

I am also having these problems and my payroll is being reported twice on my P&L.  I didn't change my settings, so I don't understand how this started and now my P&L is completely wrong.  The above instructions are no longer accurate.  Where do I find this solution to this problem now?

Thank you, Lisa

Let me help you find out why payroll is recorded twice, blueskyacu.

One of the reasons why wages show double in the Profit and Loss report is that payroll transaction from the banking page are added instead of matching them. You can undo the transactions for payroll transactions. To do this, follow the steps below:
 

1. On the left panel, click Banking.
2. Click the In QuickBooks tab, and find the payroll transactions.
3. Put a checkmark on payroll transactions and click the Undo button.

After that, go to the For Review tab. Then, select each payroll transaction and choose to Find Match to see if there's a match. If not, then you can exclude them. Please see the article: How To Exclude Expenses from Downloaded Bank Transactions.

This should now show your employees' wages once in your P & L report. Aside from that, you can also try running your payroll reports to make sure that every payroll information is accurate. I've added this article for your reference: Run Payroll Reports In QuickBooks Online Payroll.

You can always comment below if you have any payroll concerns. Remember, the Community will always be glad to assist your need. Just mention us and we're always right here for you.

I recently discovered that is how the payroll is being reported for the company I work for. I followed both sets of instructions to help and correct the reporting on our P&L. When I go to Banking and go to For Review and select a payroll transaction and chose to Find Match, there's nothing to match to. I'm looking for any help with this task I inherited. TYIA

Hello there, SCMOFF.

I'm here to ensure you're able to match transactions. 

When you click the Find Match option, there are a few reasons wh some transactions, do not appear. Here are the possible causes:

• The transactions entered in QBO don't simply match the number, amount, date, or payee of your downloaded bank deposits.
• The transactions you want to match have been reconciled.
• The transaction entered in QBO has already been matched to another downloaded transaction.
• The transactions were downloaded twice. If these transactions have already been added to QBO and have a lightning bolt in the CLR column, they will not match again.

After confirming everything, you can match the transactions again. You can refer to this article for the complete guide: Add and match downloaded banking transactions.

 In case you want to reconcile your account, you can pin this guide: Reconcile accounts in QuickBooks Online.

I'll still be here if you need further assistance or have concerns about matching your bank feed transactions in QuickBooks Online.

Thank you Adrian, I appreciate your quick response. 

I went back and attempted to verify if the transactions fell into one or more of those reasons that you gave. They did, so I went back and reviewed the link about adding and matching bank transactions. It appears that I did add them correctly. So I was still confused as to why I have multiple payroll deductions (gross & net pay) on my P&L. I kept digging to see what I could find, and it appears that Payroll may have an extra line added somehow. I have attached a link so you might be able to visualize what I am talking about. It shows where payroll is coming out of Cash, and Direct Deposit Payable. Under the Direct Deposit Payable portion it has a line that says Gross pay for the description and has the account as Payroll Expenses: Wages. Is there a way to remove this line? Every time I click on it it brings me to the pay stub for that employee. TYIA

You're most welcome, @SCMOFF.

Let me chime in on this conversation and help you figure out why you have multiple payroll deductions.

Based on your scenario, it seems like there's a double entry on the banking side. To resolve this, let's exclude these transactions from the Banking page and manually clear the one you recorded in the register.

1. Go to Banking.
2. In the For Review tab, tick the transaction checkbox to exclude.
3. Click on Exclude.

Once done, let's go ahead and clear the transaction:

1. Go to Accounting then select Chart of Accounts.
2. Beside the desired transaction, click on View register under the Action column.
3. Select the transaction to expand.
4. Under the Reconciliation status column indicated by a checkmark, click the Blank field until you see the letter C. This indicates that it has been cleared.
5. Once done, click on Save.

In addition, you may open this link to learn how to use bank rules in QuickBooks. This helps automatically classify transactions from your bank: Set up bank rules to categorize online banking transactions in QuickBooks Online.

Let me know if you have any further payroll-related questions, I'm always available to assist you thoroughly. Have a good one.

That is my problem as well.  You have payroll processed through Quickbooks with a check number and the gross amount.,  Well, when it downloads from the bank, it will not match to the check number because the amounts are different.  So you have 2 payroll checks for the same person for the same pay period.  And it does show up in your Profit & Loss account twice as payroll expenses.  It seems that several people are addressing these issues, I have called QuickBooks on several occasions and cannot get an answer and no one seems to know.  The only thing I could think of is to switch payroll companies so the problem doesn't exist anywhere.  The responses you are providing are not working.  I've tried everything.  This is a glitch in your system that I think someone should really address as it records expenses twice if you try to reconcile, but you cannot reconcile and have a correct Profit & Loss because the wages are going in twice.  Something is really wrong.

I completely understand the importance of having accurate payroll data, especially when it comes to reporting, sarajocalvoj.

I regret to hear that despite your efforts and numerous interactions with our customer service, the issues have not been completely resolved, and you're now facing discrepancies in your books.

I want to assure you that we are committed to resolving this matter as swiftly as possible and to your utmost satisfaction. To ensure that your case receives the attention it deserves, I'll personally escalate your case to our Next Level Help Team. They'll carefully examine your recent support case notes and address any unresolved concerns or complaints thoroughly.

You can expect to hear back from our representative within the next 1-2 business days. They'll reach out to you directly to discuss the process of rectifying the issue and ensuring the payroll data will show accurately.

In the meantime, if any other concerns arise or if you have additional questions, please don't hesitate to add a reply below. I'm here to ensure that you receive the help you need and to be your advocate throughout this process. 

How was this problem solved.  I am having the same problem?

Hi, @lizzo501.

This isn't the experience we want you to have when managing your payroll in QuickBooks Online.

Beforehand, have you tried to perform the suggestions provided on this thread? If so, but the issue persists on your end, I recommend contacting our Customer Care Support Team to look deeper into your account and be able to further investigate this matter.

Here's how you can reach out to them:

1. Go to Help (?), then click Contact Us.
2. Please enter your question and select Let's talk.
3. Review and Select from the following: Have us call you or Chat with us.

Moreover, we have a variety of reports you can pull up in QBO Payroll in case you need help checking up on your employee's data and other payroll-related concerns: Run payroll reports.

I'm still all ears for more concerns about payroll-related tasks. We're always here to help you in any way. Take care always.

If your payroll is being recorded twice, once under payroll expenses showing net, and then again under wages (gross), you'll need to adjust your accounting process to ensure accurate recording. Here's how you can fix this:

Identify the Duplicate Entries: First, review your accounting records to identify the duplicate entries. Ensure that you're not inadvertently recording the same payroll transaction multiple times.

Consolidate Payroll Entries: Instead of recording payroll expenses separately under "payroll expenses" and "wages (gross)," consolidate them into a single entry. This single entry should represent the total cost of payroll, including gross wages, payroll taxes, and any other related expenses.

Use Correct Account Categories: Make sure you're categorizing your payroll expenses correctly. Gross wages, payroll taxes, and other related expenses should be categorized appropriately within your chart of accounts. Avoid duplicating entries by ensuring each payroll-related expense is recorded only once and in the correct account category.

Review Payroll Processing: Double-check your payroll processing workflow to ensure accuracy. Verify that each payroll transaction is recorded correctly at the time of processing and that it's not being duplicated during data entry.

Reconcile Accounts: Regularly reconcile your payroll accounts to your bank statements and other financial records. This helps identify discrepancies and ensures that all payroll transactions are accurately recorded.

Consult with an Accountant: If you're unsure about how to correct the duplicate entries or if you need assistance in streamlining your payroll recording process, consider consulting with an accountant or bookkeeper. They can provide guidance tailored to your specific situation and help you implement best practices for payroll accounting.

Update Accounting Software Settings: If you're using accounting software, review your settings to ensure that payroll transactions are being recorded correctly. Adjust any settings or preferences as needed to prevent duplicate entries in the future.

Training and Documentation: Provide training to relevant staff members involved in payroll processing to ensure they understand the correct procedures for recording payroll transactions. Document clear guidelines and procedures to follow to avoid future errors.

By following these steps and implementing proper controls, you can fix the issue of payroll being recorded twice and ensure accurate accounting for your payroll expenses.

thanks for sharing..