Payroll Adjustments

Allow me to elaborate or clarify things so you can get back to working order, person13.

If your payroll is linked to your bank checking account, payroll transactions from the banking page may be added instead of matching. To resolve this, I recommend removing those payroll transactions from the Reviewed tab. Then, find a match so that you can find matches to your payroll transactions when running the Profit and Loss report to avoid duplicate entries. Here's how to reverse it:

1. Click Banking at the left panel. Then the Banking section.
2. Go to the Reviewed tab and find the payroll transactions.
3.  Put a checkmark on payroll transactions and click the Undo link located in the right corner.

After that, you can now go to the For Review tab. Then select each payroll transaction and choose to Find Match. Please follow these steps:

1. From For Review tab, select the payroll transaction.
2. Click it to see the full details and click the Find Match button.
3. In the Match transactions window, choose the specific date to show all transactions that match with the payroll transactions.
4. Hit the Save button.

You can refer to this article for more information about reviewing your downloaded bank transactions: Match and categorize bank transactions in QuickBooks Online. This helps you to avoid duplicate entries in your QuickBooks account. Once done, run the report again. Let me guide you on how:

1. Go to Business overview and select Reports (Take me there).
2. Open the Profit and Loss report.
3. Select Customize.
4. On the Customize report window, set Accounting Method to how you want the income/expense report.
5. Press Run report.

I've added some resources to assist you in the future. These articles provide information on customizing financial reports as well as steps to take when income is missing from the Profit and Loss Report.

• Customize reports in QuickBooks Online
• Why are my income and expense transactions missing from my Profit and Loss report?

You can always get back to me if you have any other concerns about QuickBooks. All you have to do is leave a comment below and mention my name. I’m here ready to answer them for you. Have a good one.

The payroll amount is $3k.  I can't find the $3k in my bank statements, just amounts broken up by taxes and salary and wages.  The problem I am having is that the $3k is showing up on P&L which is causing payroll to be higher than it actually should be.  I can't find any way remove and/or reconcile the $3k out so it doesn't show up on my P&L.

P&L

This is the $3k on the payroll screen.  You can see the $3k with the net amounts.

Payroll

I appreciate you for getting back to this thread, @person13. Allow me to clarify things about the payroll expenses calculation in the Profit and Loss report.

When processing a paycheck, the system credits the bank account, and debits the payroll expense account. Based on your screenshot, the report shows two wages (Salaries & wages, Wages), resulting to doubled expenses. To fix this, I recommend reviewing the details of each item. Then, make the necessary changes. 

You can view the details directly from the report. Just click the amount to expand and view the paychecks.

Here's how:

1. Open the Profit and Loss report.
2. Double click the amount under Payroll expenses to open the transaction. 
3. Review its details and make the necessary changes.

I also suggest consulting an accountant to ensure that your recordings are accurate.

Also, we have several payroll reports you can utilize to review useful information about your business and employees. I've attached an article you can check to view the complete list in QuickBooks: Run payroll reports in QuickBooks Online Payroll.

Feel free to let me know if you have further questions with your payroll reports in QuickBooks. I'm always around to help. Keep safe!

Thank you for the reply.  I see that it doubles the expense, but I need to understand how to fix it.  I would figure this is a common issue in Quickbooks, but can't seem to find an answer to the problem.  Is there a process for doing this.  For reference, I use Quickbooks Payroll and it is set-up to autorun each month.   Any additional support would be appreciated.

Thank you for the reply.  I see that is booked twice, but how do you actually fix the process?  I am sure I am not the only one running into this issue.  Is there an article on how to fix it?  For reference, I use Quickbooks Payroll and it runs automatically each month.

After some further investigation, I think it might have what is causing the issue.  In the Payroll screen, there is a drop down that says "Pay From".  Mine is currently set to Cash instead of my Checking Account.  I believe that is the issue, but can anyone confirm?  Also, how would I go back and fix the past transactions that I already made this way, so the books sync up?

Update:  I went into setting and changed the account the Payroll is coming from to the Checking account, but there is no place to update past transaction to move it from Cash to the Checking account.  There is a function in this section that allows you to update previous transactions, but will not update the Bank Account information.  Any suggestions on how to fix the past transactions so they don't show up as a duplicate expense?

Update accounting preferences for past transactions according to current preference settings (we'll update all accounts except the Bank Account section).

Update existing transactions  

Thanks for the prompt response, @person13. 

I appreciate you for updating the account for your auto payroll in the Payroll Settings in QuickBooks Online (QBO).

Regarding your concern, you can use a Journal Entry to change the account you used for your previous transactions to balance your books. Here’s how:

1. Click the + New button, then select Journal entry.
2. For the first line, select an account from the Account Depending on whether you need to debit or credit the account, enter the amount in the correct column.
3. On the next line, select the other account you're moving money to or from. Depending on whether you entered a debit or credit on the first line, enter the same amount in the opposite column.
4. Check the amounts - you should have the same amount in the Credit column on one line and the Debit column on the other.
5. Enter the information in the memo section so you know why you made the journal entry. Once done, select Save and new or Save and close.

To make sure that you're choosing the correct accounts, I highly recommend seeking assistance from your accountant to secure that your books are accurate and to avoid messing up the data. They'll also be able to provide other expert ways of dealing with this situation. If you're not affiliated with one, you can use our Find an Accountant tool to look for a Pro-Advisor near your area.

Additionally, several payroll reports are available for you to generate that will give you a closer look at your employee's total wages, deductions, and tax information in a certain period. For the complete list and details on how to pull up these reports, kindly refer to this article: Run payroll reports.

Don't hesitate to always come by and post questions in the forum if you still need help. We're here to lend a helping hand. Keep safe!

Thanks Kevin.   Will this cause a duplicate expense again?  What I mean is, it is already showing up in my books in two places (see attached)

1. Wages - Cash Account (Which is how payroll was set-up to pull from)

2. Salary & Taxes - Checking Account (Which is the actual payment through my checking account for salary and wages)

Is the system smart enough to realize these are the same expenses?