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Level 1

Payroll Journal Entries

We utilize quickbooks payroll, where check entries are auto generated once payroll is complete. I need to create a journal entry to account for the taxes paid out, which includes creating credits for the net payroll for each employee. That would create double deductions from the bank account. What is the best way to record payroll and taxes in quickbooks?


Payroll Journal Entries

You don't need to create journal entries, cstokes.


When using the payroll service, the system automatically creates default accounts to record the payroll liabilities and expenses. If you paid the taxes outside QuickBooks, all you need to do is to record the tax payment manually and it will offset the liabilities.


Here's how:

  1. Click Taxes on the left pane.
  2. Select Payroll Tax.
  3. Under Taxes, click Pay Taxes.
  4. Locate the tax due, then click Record payment.

If it's a an old tax payment, select the Enter prior tax history under Taxes. Click on Add Payment, then select the appropriate tax type and its details.


Check this article if you want to pay taxes electronically: Enroll in E-File & Pay.


Here's an article to know more about payroll accounting: Payroll accounting preferences.


Stay in touch with me if you have more question, I'm just a reply away.

Level 1

Payroll Journal Entries

@MaryLurleenM  OK. We use quickbooks payroll for everything even the taxes, but I do not see where the payroll taxes or expenses are recorded in quickbooks. I do not see the chart of accounts that were setup for it either. How do I enter the liabilities and expenses into quickbooks?


Payroll Journal Entries


Hi cstokes,


Every time you run payroll, there will be an increase in your Payroll Expenses and Payroll Liabilities accounts for the taxes incurred. All your tax liabilities will show up on the Payroll Taxes page in QuickBooks Online (QBO).


I've attached a screenshot below.




You'll want to follow the steps above to record all your tax liabilities.


Let me share these articles for the detailed steps in recording the tax payments in QBO:

You can wrap up this year’s payroll by checking out our year-end checklist.


We'll be around if you have further questions.

Level 1

Payroll Journal Entries

@JaneD @MaryLurleenM  Quickbooks did not setup automatic payroll accounts for the payroll so right now there are no payroll taxes recorded in quickbooks for the last 2 payroll cycles. Also, The Federal tax that is calculated is not the correct payroll tax that is being deducted. Can someone explain how Quickbooks calculates the taxes that are automatically paid for federal and state. Also, how do I need to "name" my payroll accounts for quickbooks to automatically update them when payroll is run? Thanks

Michael K

Payroll Journal Entries

Hey there, @cstokes. Happy to provide some insight here.


QuickBooks Online Payroll uses the following accounts for tracking purposes:


  • Payroll Expenses
  • Payroll Liabilities


I recommend searching your Chart of Accounts for these accounts, as these are the default accounts that QuickBooks Online uses. If you're not seeing these, I recommend reaching out to our QuickBooks Online Payroll Support Team. It's super easy to get in touch. Check it out:


  1. Sign in to your QuickBooks Online company.
  2. Click Help at the top right.
  3. Select Contact Us to connect with a live support agent.


That's it! Please let me know if there's anything else I can do to be of assistance. Have a good one!

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