Payroll, historical data / bank feed

Thank you for sharing complete details about the payroll setup and how it works on your end, freedomhvac.

It's good to know that bank accounts are set up correctly on the payroll preferences. It's important to map the Chart of Accounts to track payroll expenses.

When the payroll service is set up, the system automatically creates default accounts to record your payroll liabilities and expenses.

There are just a few steps to change your payroll account info. Here's how:

1. Click the Gear icon in the top right corner.
2. Select Payroll Settings.
3. Choose Preferences at the top of the page, beside of Setup.
4. Click Accounting Preferences.
5. Select Customize at the bottom of the page.
6. You'll then be able to choose the checking account to use for payroll.

The account will have to be one that is already connected to QBO. This article will walk you through the steps of connecting an account if the one you need for payroll isn't already linked: How to use Online Banking, Connect Bank Accounts, and Review your Bank Feed in QuickBooks Online.

If you made the changes after running payroll, it affects future transactions. However, you have an option to apply these changes to your past transactions too. You'll receive a confirmation screen that your accounting preferences have been updated.

If you want to use different accounts for tracking these transactions, your first step is to go to the Chart of Accounts window. Then, set them up.

Let me show you how to do it:

1. Select the Gear icon at the top, then Chart of Accounts.
2. Select New in the upper right corner of your screen.
3. Choose Expenses from the Account Type drop-down menu.
4. Select Payroll Expenses from the Detail Type drop-down menu.
5. Type in the name of the Payroll expense or liability account in the Name field.
6. Click Save and Close.

Once done, go back to the  Payroll Settings and use the newly added account for tracking payroll transactions.

If you need a fresh payroll information, you can start over with QuickBooks. Then, use this link to know what additional information you need easily manage the system: Learn how to set up and start using your new Payroll for QuickBooks Online.

Don't hesitate to leave a comment below if you have follow-up questions about this. I'll be around to provide the information needed to track payroll transactions.

My bank account is set as the right account in that area of preferences.

Thank you for posting your response, freedomhvac.

I can only imagine what you've been through. I'd like help and share what I know about payroll in QuickBooks Online.

As my colleague MaryLandT mentioned, once you set up payroll, the system will automatically create the default accounts to record your payroll liabilities and expenses.

Also, you can utilize the Audit log to check the transactions and if the new account you created will show.
 

Here's how:

1. Go to the Gear icon.
2. Select Audit log.
3. Locate the newly created account, then click View
   

Here some helpful articles to guide you about payroll in QuickBooks:

• Year-end checklist for QuickBooks Online Payroll

• Get answers to your payroll tax payment and filing questions

Post or click the reply button below if you have further questions and clarifications. I'll be here to help. Have a great day!

Thank you for that information. 

Can you please tell me, what do I do with all the previous IRS tax deductions that have cleared my bank, from the transactions, for review list. Where on earth do they go? I feel like those debits along with my payroll checks that clear my bank are somehow offsetting everything. My numbers are just so far off, I don't know what to do.

Can anyone please let me know what to do with this irs payroll tax deductions that have cleared my account. Where should they be assigned to?

Hello, freedomhvac. 

I appreciate sending us a screenshot. I'll take my time to help you correct your payroll transactions. 

They are usually assigned under the payroll liabilities accounts. However, be careful when categorizing these deductions. 

The first thing you're going to do is to check to see if they're already recorded in your bank register (the correct one).

If that's the case, then you'll want to manually match them with the records in QuickBooks. Simply select an IRS deduction record, then click the Find match radio button. Do this until all of them are properly matched. 

However if they're not recorded in the correct bank account (but under the incorrect business checking account), then you'll want to move them through journal entries. 

You can use the payroll liability accounts. However as what the agent had mentioned, you'll want to consult an accountant since this affects your balances. 

An alternative way would be to merge the business checking with your correct bank account. This works if those transactions are the only ones left in the incorrect account (but already recorded under the payroll liability accounts). 

To merge the account: 

1. Go to the Chart of Accounts page. 
2. Take note of the exact name of the correct business checking account. You can click the arrow icon, then select Edit. Then, copy the name.
3. Find the incorrect bank account, click the arrow icon, then select Edit. 
4. Paste the copied name, then click Save and close. Before doing this, ensure the Detail Type matches with the other bank account.

Next, match the IRS deductions with the bank records. 

Though if those IRS deductions aren't recorded in QuickBooks yet, then you'll want to manually pay them. Then, match those pending transactions with the manual payment transactions. 

After dealing with the corrections and those deductions, you can start working on other areas in QuickBooks. If you need help reconciling your bank, this article can guide you: Reconcile an account in QuickBooks Online.

I'll work with you again and help you sort out other payroll transactions. Just leave your reply here and I'll get back to you. 

Thank you, very helpful information.

It looks like the payroll checks have been recorded in that wrong account, on some of the transactions in the bank feed it shows duplicates, but I'm not sure how to find where the other one has posted. I would very much like to merge that account, but before I do that can you take a look at this so I don't make my problems any worse...

This is the other, wrong checking account

and the liabilities 

The checking account for all my tax liabilities is also under the wrong "business checking" account.

Thank you for sharing the view of your banking page and account register, @freedomhvac.

Your payroll taxes or pending liabilities will post on the liability account until you make payment. Once you made a payment, it will eventually show up on your bank or cash account. Since you notice possible duplicate records, you can exclude them from your records. 

On the other hand, before merging your accounts, I recommend consulting with a professional accountant since these involve multiple accounts and records. This way, an accountant can guide you with proper actions and keep your payroll transactions accurate.

Moving forward, please keep the correct set up of your bank accounts from the Payroll Settings to avoid issues and incorrect balances. You can check out the steps provided by MaryLandT as your guide.

For more tips about categorizing the transactions downloaded from your bank, you can also open this link: Categorize and match online bank transactions in QuickBooks Online.

If you have any other follow-up questions about QuickBooks or payroll, let me know by adding a comment below. I'm more than happy to help. Keep safe!