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dherman73
Level 1

QB entering Payroll direct deposits in both business Bank Registers

We have 2 business checking accounts (1 Income account, 1 Expense account). We setup our Payroll payments to be taken out of our Expense account (which it is). Problem we're having:

QuickBooks is posting each Payroll Direct Deposit in our Bank Register as a 'Payment' in our Expense acct registry & also our Income acct registry. Should each Direct Deposit be posting entries in both accounts/registries?  If this is incorrect, please advise how to fix. We're thinking these should only post to our Expense acct register

*attached pic of the entry in the Income acct.

 

Thank you-

3 Comments 3
Angelyn_T
QuickBooks Team

QB entering Payroll direct deposits in both business Bank Registers

Hi there, Dherman. I'm here to share with you some information about how direct deposit payroll works in QuickBooks Online (QBO).

 

Direct deposit payroll should only post to your expense account. Since the amount is also showing up on your income account, I recommend reviewing the accounting preferences from your Payroll Settings.

 

  1. Sign in to your QBO account.
  2. Go to the Gear icon, then click on Payroll Settings.
  3. Review your account from the Accounting Preferences section. If necessary, update the accounts from there.

 

To learn more about viewing and editing your current payroll settings, you can open this link: Payroll accounting preferences.

 

With regards to the funds posted to your income account, you can use a journal entry to offset the amount. Before making any changes, I recommend seeking assistance from your professional accountant. He or she can look into your account securely and use the correct accounts under the Credit and Debit section.

 

For additional resources while working with your direct deposit and other payroll transactions, you can check out the topics from these links:

 

 

If you have any other questions, let me know by adding a comment below. I'm more than happy to provide additional assitance. Keep safe!

kfurnish
Level 1

QB entering Payroll direct deposits in both business Bank Registers

Ever since we switched our payroll bank accounts in QB, it has been posting to two accounts in the register. This has been going on for over a month and now today the payroll has hit a different account, my QB checking account!!!

This is obviously an error on QB side and as many hours I have wasted on speaking with a representative, with no answer as to why this is happening. As they do not know what they are talking about!!!

Somebody please help!!!

LollyNino_C
QuickBooks Team

QB entering Payroll direct deposits in both business Bank Registers

I appreciate you for sharing your concern here in the Community, @kfurnish

 

I recognize this was challenging on your part. What we can do is, call our support team again in QuickBooks Online for account validation. They can also review the affected account for direct deposit and payroll. 

 

Here's how: 

 

  1. Sign in to your QuickBooks Online company.
  2. Select the Help (?) at the top right.
  3. Select or type Contact Us.
  4. Enter your concern, then select Let's Talk.
  5. Choose a way to connect with us:
    • Start a chat with a support expert. Live chat all day, M-F.
    • Ask the community to get help from businesses like yours. 

 

Be sure to review their support hours so you'll know when agents are available.

 

You can bookmark this article in your browser for future reference: Set up direct deposit for employees.

 

If you have any other questions about your account, let me know by adding a comment below. I'm always here to help. Keep safe!

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