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AdminSol
Level 1

Payroll Account is Suddenly Invalid?

I am getting the following message when trying to run payroll:

 

"Either the Direct Deposit Payable account, or its parent account, is an inappropriate account type. Please check the account types in your company's Chart of Accounts."

 

I have run payroll the same way from the same accounts since January 1st, 2021.  Nothing has changed.  I see this appears to be an issue for many different users just with slightly different wording.  Customer service thus far has not been helpful.

 

~Marsha

TirzahC
QuickBooks Team

Payroll Account is Suddenly Invalid?

Thank you for reaching out here in the community and sharing your thoughts on this matter,  AdminSol.

 

It could be that the account associated with your Repayment pay type isn't the appropriate account type. We can go to the Payroll Settings and identify the Repayment Account. Here's how:

  1. Go to the Gear icon.
  2. Select Payroll Settings under Your Company.
  3. Under the Accounting section, select Preferences.
  4. In the list of mapped accounts, locate the Repayment account, and double-check the associated account. If this needs to take action, make sure to assign the correct account.

If this needs to take action, make sure to assign the correct account. You can follow these steps below to locate the Repayment Account in the Chart of Accounts (COA).

  1. Go to Accounting on the left panel.
  2. In the Chart of Accounts tab, locate the account you identified from Payroll Settings in the list of accounts and click Edit under the Actions column.
  3. Change the account type to the correct one.

If the same issue, you can log in to your account through a private browser. This helps us identify if this is a browser issue. If this works, we can go back to your regular browser and clear its cache. In case private browsing fails, you can also try switching to a different supported browser

 

Check this article for reference: Payroll accounting preferences

 

Feel free to hit the reply button if you have any other questions or concerns. I'm always here to lend a helping hand.

MickieCD
Level 1

Payroll Account is Suddenly Invalid?

I ran across this error message after clicking to submit payroll. I remembered I had added a 'fuel' deduction to an employee's paycheck which was a new category for us. I went in and deleted that deduction (as it may have been set up incorrectly) and this cleared up the error message and I was able to process payroll by putting the deduction under a different category.

SheShe3
Level 1

Payroll Account is Suddenly Invalid?

Hi @Holly04 

 

I too got an error message except mine was for our Uniform deduction for employees. Had no problem using Uniform Expense account in Desktop version but now an issue in QBO. 
So finally figured it out that it needs to be an Other Current Liability Account in order for QBO payroll to accept it.  But that created another issue for me showing a negative balance in Uniform Liability account because our company pays more than the employee.  Called QBO payroll and I was told I would need 2 accounts, Uniform Liability and Uniform Expense account. The employee deductions show up in the Uniform Liability account. When I

pay for the uniforms, I split the payment between the 2 Uniform accounts.  So for payroll, it uses the Uniform Liability account. Its weird that it can’t use 1 type of account but oh well 🤷🏻‍♀️ I hope that helps some 😁

mrwizard
Level 2

Payroll Account is Suddenly Invalid?

This worked.  Thank you!

The Patriotic Pig
Level 1

Payroll Account is Suddenly Invalid?

If it mentions a "Repayment Account" in the error, that's the problem. I setup a Cash Advance Repayment Deduction for an employee and didn't set it up correctly I guess. Once I fixed it, I was able to run payroll. Haven't been able to run payroll for a week and Quickbooks support was no help. Told me to wait 12 hours and try again. It's already been a week. Thanks for posting your solution MickieCD.

sue-oropeza
Level 1

Payroll Account is Suddenly Invalid?

This does not work because I use only the Payroll Core not any Quickbooks Accounting software.

What now?

SirielJeaB
Moderator

Payroll Account is Suddenly Invalid?

Welcome to the Community, @sue-oropeza. I appreciate you for joining the thread. 

 

Our primary concern is getting your issue resolved. But I need more information about it. We would appreciate it if you could please provide us with additional details about your issue. This will help us provide the most suitable resolution for you.

 

Don't hesitate to click the Reply button bellow. I'm looking forward to your response. Have a nice day, sue-oropeza.

fcamara
Level 1

Payroll Account is Suddenly Invalid?

The solution to this is simple although it may not seem that simple. 

Payroll customers may see the error, "Either the Repayment account or its parent account is an inappropriate type. Please check the account type in your company's Chart of Accounts." or "Either the Payroll Liabilities account or its parent account is an inappropriate type. Please check the account type in your company's Chart of Accounts." when a payroll deduction item is not mapped to the correct account type in the chart of accounts. They may see this when running payroll, paying payroll taxes, or exporting payroll transactions.

Before you proceed

Your customer may only update the account type for one of the following reasons:

  • A loan repayment item is mapped to a liability account instead of an asset account.
  • A non-repayment deduction item is mapped to a repayment or asset account instead of a liability account.
  • A non-repayment deduction item is mapped to an expense account instead of a liability account.

Update the account type

  • In the chart of account, edit your account to fix the type.                                                                                                                   
  1. Go to Accounting.
  2. Choose Chart of Accounts.
  3. Select the drop-down arrow next to View register and then tap Edit.
  4. Correct the account type or detail type.
  5. Click Save and Close.
       ++   ++   
  • A In the Payroll Mapping:
  1.     Go to Settings 

     

    , then Payroll settings.
  2. Select 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. Then select Continue.
          ++   ++
Once these are updated, Viola you can run payroll
fcamara
Level 1

Payroll Account is Suddenly Invalid?

Hi Sheri:

I had a cx with this same exact issue I was able to resolve it using the steps mentioned in my post. 

ksolem
Level 1

Payroll Account is Suddenly Invalid?

I have been having this problem with the accounting tab on the payroll settings for over a month.  I have called several times, spent hours on phone, been hung up on, etc.  One person told me there was no problem, one told me it was a widespread issues, one told me my account must be locked, another something else.  Bottom line is, I cannot access the accounting section under the payroll setting and I have changes that need to be made.  The odd part is, I have three companies under one account and two of them work and the third one does not.  It is making be seriously rethink if I want to remain with Quick Books or starting looking elsewhere where the customer service is better.  This is totally unacceptable!

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