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896Pie
Level 1

P&L Wages doesn't match Payroll

Our accountant noticed our P&L is doubling our payroll.  What is causing this? Is there an entry I need to make or did I record each check and not match them correctly to the payroll?  Our payroll should only be $29,700 and it's showing $47,516.....  All my payroll forms were filed correctly and exported correctly, so not understanding why P&L doesn't match the W-2's, W-3, etc.....

12 Comments 12
QBsguru
Level 7

P&L Wages doesn't match Payroll

I can't say for sure, but you may have set up your payroll items incorrectly.  Payroll expenses should consist of wages and employer taxes.  Review your payroll items.  Have you entered an expense account when you should have entered a liability account for employee withholdings and other deductions? 

 

You can also bring up a paycheck and select the report tab then the journal entry.

A paycheck in journal entry form should look something like this:

                                                                                               DR                                CR

Wages (expense account)                                                XX                                                                            

Employee withholding taxes (liability account)                                                  XX

Employer taxes  (expense account)                                 XX

Employer taxes (liability account)                                                                           XX

Cash                                                                                                                             XX

896Pie
Level 1

P&L Wages doesn't match Payroll

Thank you. Your reply helped me find the issue, as I was recording the checks in the same account as the gross pay.  Appreciate your help!!

896Pie
Level 1

P&L Wages doesn't match Payroll

Thank you, you're reply helped me find the issue. I was recording the net checks paid to the employees to the same account as the gross pay.  Appreciate the knowledge transfer.  Thank you again!

Malcolm Ziman
Level 10

P&L Wages doesn't match Payroll


@896Pie wrote:

I was recording the net checks paid to the employees to the same account as the gross pay. 


Each check should come up as a "Match" in the bank feed, if you are using QBO Payroll

cccjhunt
Level 1

P&L Wages doesn't match Payroll

They net payroll check should come up with a Match but for some reason a few did not.  So I have net checks and gross checks.  How do I correct this? I went to the banking and undo the checks that did not match but there is not a match now for them.  I am in QBO.  

The Gross Payroll is in the GL account and so are some of the net checks that did not have a match.  Therefore the GL account is not correct.

 

How to I correct this?

ChristieAnn
QuickBooks Team

P&L Wages doesn't match Payroll

Hi there, cccjhunt.

 

We haven't received any similar observations reported to us. For now, to match your checks in QuickBooks Online, you'll need to make sure that the information is correct especially the dates and amounts.


Since you've confirmed that QuickBooks doesn't show your checks as matching entries, you can click on a bank transaction and select Find Match to locate the transactions. Then, select them once found.

 

Here's how:

 

1. Click Banking at the left panel. Then choose Banking.
2. In the For Review tab, select a transaction that you want to find a match.
3. Click the Find match radio button.
4. From the drop-down list under Show, select Checks.
5. Go to Select transaction to match section. Then, select the transaction you've find match by putting a checkmark in the box.
6. Click the Save button.

 

If you're not able to find match, I also recommend to check the status of the transaction to make sure it's not reconciled. 

 

Please follow the steps below:

 

1. Select Banking at the left panel. Then Banking tab.
2. Click Go to Register link.
3. Look for the check. Then choose the check column and if the transaction shows blank field = not cleared/unreconciled, C = cleared, R = reconciled.
4. If it's shows R and confirmed that it shouldn't,  just continue clicking in that field until blank field  is achieved.
5. Click the Save button.

 

Please check this article how to match, add and review multiple matches in QuickBooks Online to avoid duplicate transaction: Download, match, and categorize your bank transactions in QuickBooks Online.

 

Please keep me updated after trying the steps above and I'll get back to you as soon as I can. Take care always.

cccjhunt
Level 1

P&L Wages doesn't match Payroll

Even though I knew it would mess up the reconciliation I did go to the register and undo  the checks.  

If I remember correctly the banking upload was duplicated.  I still do not know why there are not any matches for the payroll checks cashed.  I fear i made a bigger mess.  

Can I run a report or see where the payroll checks were matched?  My payroll is too high.  I only have one employee on this account and I did "add" some of them to different account "officers Payroll"  then I used in the payroll set-up - "Wages".  I changed this when I unreconciled them.  But of course my bank is now out of balance.   

AlexV
QuickBooks Team

P&L Wages doesn't match Payroll

We can exclude the duplicate checks, cccjhunt.

 

This can be the reason why those checks doesn't have a match. Excluding them also resolves the discrepancy on your account. Let's undo them first since you've already added them.

 

Before that, let's go to your Chart of Accounts and locate the affected account. Then, click on View register. From there, you can easily determine which transactions are duplicated.

 

Then, let's follow these steps:

  1. Go to Banking tab and select your payroll bank account.
  2. From the Reviewed tab, locate the duplicate checks and click on Undo.
  3. Click on For Review tab. Check the boxes of those duplicate checks.
  4. Select Exclude Selected under the Batch actions drop-down.

In addition, we can see where the payroll checks were matched in the Reviewed tab. The details are under the ADDED OR MATCHED column. You can click on the hyperlink to open the transaction.

banking.PNG

 

These are the articles you can read for more information:

Please reach out to me if there's anything else you need. I'd be happy to help.

cccjhunt
Level 1

P&L Wages doesn't match Payroll

the reconciled checks that clicked "undo" on are in the banking now but my bank is off.  Is there someway I can check on the payroll account used - with the gross wages and what net checks from the bank were matched to them?  When I unreconciled the checks that were in the wage account as net, there was still nothing to Match to.  

 

 

ReymondO
QuickBooks Team

P&L Wages doesn't match Payroll

Yes, I can guide on how to verify the payroll account you're using, @cccjhunt.

 

Let's simply follow these steps below:

 

  1. Go to the Reports menu and select Paycheck List in the search bar.
  2. Click the amount of the transaction under the NET PAY column.
  3. Now, you will see the payroll account used under the Paid from section.

Paycheck List..png Paycheck List..png01.png Paycheck List..png1.png

 

You can now adjust the transactions using the Journal Entries in QuickBooks Online or transfer the funds to the correct account.

 

You can also reach out to your accountant to help you in creating the adjustment to your bank.

 

Please feel free to let me know if you require any further information about banking transactions. I'll be there to help.

cccjhunt
Level 1

P&L Wages doesn't match Payroll

Thank you for that but the issue is not what account but if it was matched or not.  When I added the net checks the bank account is correct but the wage account now includes the net check AND the gross checks.  

Michael K
Moderator

P&L Wages doesn't match Payroll

Hey there, @cccjhunt.

 

Thanks for providing an update. It sounds like at some point the check is being added from the Bank Feeds rather than being matched to the existing checks. One option you have if you're having issues with matching from the Bank Feeds is to simply Exclude it. This will remove it from your For Review tab and you won't have to worry about matching it since the checks are already in your bank register. You can do so by following these steps:

 

1. Select Banking.

2. On the Banking page, choose the For Review tab.

3. Click the checkboxes of the transactions to exclude.

4. From the Batch actions drop-down, pick Exclude Selected.

 

Excluded transactions are listed on the Excluded tab for reference or review, but are not tracked or reported as part of your business finances and don't appear in any associated account registers or reports.

 

For more information on Excluding transactions, you can check out the article: Exclude expenses from downloaded bank transactions

 

Since we've provided all options available to use based on the information you provided, I recommend reaching out to our Support Team so they can take a look at exactly what you're seeing and go through some other options. You can do so by following the steps outlined here: Contact the QuickBooks Online Customer Support team

 

If you have any further QuickBooks questions, please let me know. Have a great day!

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