Quickbooks counting both gross and net pay as payroll expense - please help

I have the same issue and also spent the best part of a day with QBO agents on the phone.  One of the agents was able to at least help with part of the problem; that of fixing it automatically so problem goes away. 

The QBO agent had me verify/update the bank account number in TWO places under Payroll settings.  It appears there are two places in payroll settings where the bank account # should be updated, there is the obviously visible one in payroll settings but there was another, more obscure, location which should have also been updated and the QBO agent had me update this field as well to the correct bank account number.  Unfortunately, I cannot recall the navigation to where this second update was made but I know it's there (agents I dealt with were Shadoe S, Alex and Heather, not sure which one fixed it).

I am still trying to find the fix for the second question, that of how to fix the past transactions to ensure an accurate P&L.  I am currently having our 3rd party accountant suggest a solution (still waiting for that answer).

Any fixes?  I have uncategorized the direct deposit amounts, now I don't know what to do to match them where the P&L is correct?

I'm here to help ensure your payroll transactions are posted to the correct accounts, sprock.

There's one place to check and track your payroll transactions. And, you can proceed to the Payroll Preferences to track payroll wages, taxes, deductions, and company contributions.

Follow the steps below to update your payroll accounting settings.

1. Go to Settings ⚙, then Payroll settings.
2. Click Edit ✎ next to Accounting.
3. Select Edit ✎ to update a specific section.
4. Choose which account the transaction of the specific payroll item should go to, then select Continue.

If you need to apply these changes to past transactions, select Edit ✎ next to Want to update existing transactions, then add a Start Date. 

In case you need to update the bank account for your payroll, here's a guide for you: Learn how to change your company's bank account information. Choose QuickBooks Online for instructions and detailed steps.

Keep me posted if there's anything else I can help you with your payroll transactions. I'll be right here to guide you.

I have uncategorized them so that they are not duplicated and and everything looks good in my payroll settings.  Now the "gross pay direct deposit" shows up in my banking tab as for review?  Where do I put these as they do not match the net pay that is in my bank account?  I don't know what to do now with them so that they don't show up again on my P&L and are duplicate (direct deposit net amount also showing up with gross pay and messing up my numbers)?

Hey sprock,

Thanks for reaching back out! For this situation, it would be best to reach out to your accountant to see what would be the best steps for your business. If you don't have an accountant, no worries! We have a ProAdvisor program where you can connect with experts within your area. Here's how:

1.  Go to this Find my Accountant link.
2. In the Find an expert in section, choose what you're looking for, then use your search field to enter a City or ZIP code.
3.  Select Search.
4. Browse through the results and find one that works best for your business. You can click on each ProAdvisor's profile to learn more information about them.
   

Please let me know if you have any questions. My team and I will be happy to help you. Take care. 

I have the same problem and all of my payroll settings are correct.  The NET payroll is reporting correctly - how do I stop the Gross payroll from also showing up on my P&L?  My P&L is a mess because it is currently counting both gross and net payroll.  I can't find a way to stop the gross payroll from double reporting.

Thanks for joining us here today, @blueskyacu.

I'll share some information about the payroll gross amount in the Profit and Loss report. All payroll income and expense were tagged under the payroll expense account. This can be found by going to Gear and then selecting Payroll Settings.

Since you've mentioned that you've already check and verified the payroll set up, I recommend contacting our Payroll Support. This way, they can verify and check if you have other account hidden for payroll, or an adjustment account which may result in posting in the Profit and Loss report.

You can use this link to reach out: Contact Payroll Support.

In case you need additional resource with payroll-related tasks, browse this link to go to the page. It has topics with articles and some videos to guide you along: QuickBooks Online Payroll.

Feel free to reply to this thread if you have follow-up questions or concerns with payroll account or with the Profit and Loss report. I'll be right here for you. Take care and have a nice day ahead.

Did you receive any information on how to correct this issue? I am having the same issue.

Encountered the same issue, and tried all the methods mentioned in this conversation, still not fixed yet, could someone share more on that? thanks !

Hi @sprock , how did you uncategorize these? Once they're uncategorized and listed in your transactions to review, you can just exclude them all I believe.

If you exclude these, you cannot reconcile your bank account. This is the issue I am running into. I spent a full day on the phone and using the chat, issue not resolved. I tried again the next day through chat, and had wonderful help trying to resolve the issue. We excluded those net pay payroll payments, and it corrected the expense report for payroll... However, guess what? Trying to reconcile the bank account for last month, and those excluded net payments are needed in order to balance the books correctly... So I am literally sitting here dumbfounded... There has got to be some kind of error going on here Quickbooks on your guys end, and telling me to contact an accountant isn't the answer. There has got to be a way to make this work. Obviously this is a glaring glitch in your system. Very frustrated at this point guys.

It hasn't been easy for you and your business. 

Since something like this happens, I recommend contacting our QuickBooks Online Support Team. It allows them to look into your account and confirm the problem.

To speak with one of our experts from QuickBooks Online Support. Please follow the steps below to contact support:

1. Sign in to your QuickBooks Online company. Click Help (?).

2. Select either tab: Assistant or Talk to a Human.

3. Search or select Contact Us.

4. Start a chat with a support expert.

You can contact us from Mondays to Fridays, 6 AM to 6 PM PT, and Saturdays, 6 AM to 3 PM PT.

You can utilize this article for future reference: Common custom reports in QuickBooks Online.

For additional QuickBooks-related concerns, don't hesitate to post them here in the Community. We're always available and willing to lend a hand to your queries. Have a great day ahead.

I am having the same issue and have been on the phone with multiple people over the last month trying to get this fixed. This should be an easy situation, the gross pay should go to a liability account, and reverse out once the net pay and corresponding taxes have hit. Otherwise, the gross pay shouldn't hit at all. Any assistance would be greatly appreciated as this seems to be a much larger issue, and is creating inaccurate accounting - which goes completely against Quicksbooks Online entire business plan.

Hello there, @BAssociatesCPA.

Thank you for reaching out to our representatives in an attempt to fix the issue about gross and net pay as payroll expenses. I understand the need for accurate accounting as the program is accounting software. It's also imperative for businesses as it aids you in planning for adequate cash resources to monitor the progress of your business.

Upon checking, there's an active investigation (INV-90151) regarding this matter with the product team. I've verified that you're on the list of affected users attached to the report. You'll receive an email once a fix is available.

To learn more about using projects and payroll expenses, refer to this guide: Track hourly labor costs and profitability by project in QuickBooks Online.

Do you need help paying and filing your taxes after correcting the duplicate payroll expense, read through this article: Pay and file payroll taxes and forms in Online Payroll.

I'm just a click away if you need further assistance handling payroll expenses. Let me know in the comment section below if anything else comes up.

Hello, I'm having the same issue. 

Hi there, @KerryAnn. Yes, this is a known issue and I understand how this affects your business.

I completely understand and acknowledge your frustration regarding the ongoing investigation (INV-90151) regarding the inconsistent population of Payroll Expenses into Project expenses in QuickBooks Online. I want you to know that our team of highly skilled engineers is investing significant effort and resources into isolating and resolving this issue as swiftly as possible. We genuinely empathize with the challenges this situation may be causing your business activities.

In the meantime, I'd recommend getting in touch with our Customer Support Team so you'll be added to they can link your name to this investigation and be able to receive email notifications firsthand once an update about this will be available.

Here's how:

1. Go to the Help icon and select Contact us in the Search tab.
2. From the What can we help you with field, enter your question.
3. Click on Continue.
4. Choose either Appointment, Callback, or Chat.

Be sure to get in touch with them within their business hours (Plus, Essentials, Simple Start M-F 6 AM to 6 PM PT and Saturday 6 AM to 3 PM PT,  Advanced- any time, any day) to get timely assistance.

Additionally, while QuickBooks Online offers a variety of reports, some are available to certain users and some are not depending on subscription levels. To know which reports are available for your version, check out this article: Reports included in your QuickBooks Online subscription.

We sincerely appreciate your patience and understanding during this investigation while we're still working on this. We value your business and are dedicated to providing you with the best possible experience with QuickBooks Online. If you have any further concerns or questions, please don't hesitate to reach out. We are here to support you every step of the way. 

Is there a fix yet for this issue?  I just got off the phone with customer service where i was attached to an investigation of a different number.

QBO has been aware of this issue since at least 2021, when is it going to be addressed?

Hello there, Tuggles. We understand the importance of getting this resolved as soon as possible for this function to run smoothly. We're here to share some updates regarding this issue. Let me share some updates about it.

Yes, you're right that we have an ongoing Investigation about the issue stated in this thread. Rest assured that our engineers are working diligently to get this matter resolved. However, we're unable to provide a specific time frame when this issue will be fixed. Rest assured that as soon as there's an update, you'll get notified via email. We appreciate your patience as we work on a fix.

You can also refer to this article for more details about managing projects, payroll expenses, and filing taxes:

• Track hourly labor costs and profitability by project in QuickBooks Online
• Pay and file payroll taxes and forms in Online Payroll

Please let me know if you have any other QuickBooks-related concerns, especially in handling payroll expenses. We'll be glad to help you, Tuggles. Have a good one!

Please add me to the list to be contacted when corrected. This has cause huge errors in my tax returns. How will quickbooks / intuit remedy this situation?

I understand that you have been facing challenges with your business, and I appreciate you for letting us know, @Mona16.

I've checked our records and found that the mentioned INV in the thread has already been closed. Therefore, I recommend contacting our Customer Support Team. By doing so, they can securely access your account further and re-investigate the problem.

Here's how:

1. Sign in to your QuickBooks Online company.
2. Go to Help (?).
3. Select 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.
• Get a callback from the next available expert.

To guarantee that you receive assistance promptly, please ensure to contact the support team during their designated business hours. For Plus, Essentials, and Simple Start plans, their support is available from Monday to Friday, 6 AM to 6 PM PT, and Saturday from 6 AM to 3 PM PT. However, for Advanced plans, support is available 24/7, on any day.

You can check this article for details: Contact Payroll Support.

For further information on utilizing projects and payroll expenses, please consult the guide titled: Track hourly labor costs and profitability by project in QuickBooks Online.

Please let me know if you require additional assistance with managing payroll expenses. I'm here to help. Please leave a comment below if you have any further questions or concerns.

Hi there, is there any other kind of update for INV-90151? Or is there a different incident number now? Since the original one is closed, is there a resolution? Thank you!

I completely understand how crucial it is to have accurate payroll data, especially when it comes to reporting, steven.

Upon checking in our system, the investigation is still ongoing. We don't have a specific time frame for the resolution. Please be assured that our engineering team is diligently working to address and resolve the issue of the inconsistent population of Payroll Expenses into Project expenses.

I recommend contacting our QuickBooks Support Team so that they can add you as one of the affected users. This way, you'll receive email updates on the investigation's status and be notified once they resolve the issue. I've included the steps to contact support below. 

1. Go to the Help (?) icon at the top.
2. On the Assistant tab, click Talk to a human.
3. Enter your concern in the Type something field, then click the Send icon.
4. Click on I still need a human.
5. Select Get help from a human.
6. You can either select Chat with us or Have us call you.
   

    

As the fiscal year comes to an end, it's time to file your taxes. I recommend checking out our Year-end checklist for the QuickBooks Online Payroll article to help you wrap up this year’s payroll and prepare for the next.

I appreciate your patience as we work through this. If you have any other concerns or questions about managing payroll and employees, please don't hesitate to add a comment below. I'm here to help you out.

I am having this same issue. Entries for both the net and gross payroll. Is there a fix for this yet? when can we expect a fix?

Hi, Ryan167.

I understand the frustration you're experiencing with this inaccurate payroll data issue, and I want to assure you that our engineers are actively working on resolving the problem. 

However, I regret to inform you that we do not have a specific timeframe for when this will be fixed. If you're not yet added to the affected users list, don't hesitate to contact our customer care support so we can notify you with updates on the progress as soon as we have more information or a resolution in place.

Your patience and understanding are much appreciated.