Question

Payroll Adjustments

Forum|Forum|3 years ago
February 24, 2023
10 replies
72 views

I have automatic payroll set, but I am having issues with running my P&L at month end.

1. It shows wages at $12k = $3k a month for 4 months which is gross salary to the employee

2. It shows salaries and taxes for $12,966 = $2,593.20 a month for 5 months which is net salary to the employee

It looks like it is double counting, how do you fix this issue?

QuickBooks Online

R

RCV

QuickBooks Team

Allow me to elaborate or clarify things so you can get back to working order, person13.

If your payroll is linked to your bank checking account, payroll transactions from the banking page may be added instead of matching. To resolve this, I recommend removing those payroll transactions from the Reviewed tab. Then, find a match so that you can find matches to your payroll transactions when running the Profit and Loss report to avoid duplicate entries. Here's how to reverse it:

Click Banking at the left panel. Then the Banking section.
Go to the Reviewed tab and find the payroll transactions.
Put a checkmark on payroll transactions and click the Undo link located in the right corner.

After that, you can now go to the For Review tab. Then select each payroll transaction and choose to Find Match. Please follow these steps:

From For Review tab, select the payroll transaction.
Click it to see the full details and click the Find Match button.
In the Match transactions window, choose the specific date to show all transactions that match with the payroll transactions.
Hit the Save button.

You can refer to this article for more information about reviewing your downloaded bank transactions: Match and categorize bank transactions in QuickBooks Online. This helps you to avoid duplicate entries in your QuickBooks account. Once done, run the report again. Let me guide you on how:

Go to Business overview and select Reports (Take me there).
Open the Profit and Loss report.
Select Customize.
On the Customize report window, set Accounting Method to how you want the income/expense report.
Press Run report.

I've added some resources to assist you in the future. These articles provide information on customizing financial reports as well as steps to take when income is missing from the Profit and Loss Report.

You can always get back to me if you have any other concerns about QuickBooks. All you have to do is leave a comment below and mention my name. I’m here ready to answer them for you. Have a good one.

P

person13Author

The payroll amount is $3k. I can't find the $3k in my bank statements, just amounts broken up by taxes and salary and wages. The problem I am having is that the $3k is showing up on P&L which is causing payroll to be higher than it actually should be. I can't find any way remove and/or reconcile the $3k out so it doesn't show up on my P&L.

P&L

This is the $3k on the payroll screen. You can see the $3k with the net amounts.

Payroll

K

Kevin_C

Moderator

Update: I went into setting and changed the account the Payroll is coming from to the Checking account, but there is no place to update past transaction to move it from Cash to the Checking account. There is a function in this section that allows you to update previous transactions, but will not update the Bank Account information. Any suggestions on how to fix the past transactions so they don't show up as a duplicate expense?

Update accounting preferences for past transactions according to current preference settings (we'll update all accounts except the Bank Account section).

Update existing transactions

Thanks for the prompt response, @person13.

I appreciate you for updating the account for your auto payroll in the Payroll Settings in QuickBooks Online (QBO).

Regarding your concern, you can use a Journal Entry to change the account you used for your previous transactions to balance your books. Here’s how:

Click the + New button, then select Journal entry.
For the first line, select an account from the Account Depending on whether you need to debit or credit the account, enter the amount in the correct column.
On the next line, select the other account you're moving money to or from. Depending on whether you entered a debit or credit on the first line, enter the same amount in the opposite column.
Check the amounts - you should have the same amount in the Credit column on one line and the Debit column on the other.
Enter the information in the memo section so you know why you made the journal entry. Once done, select Save and new or Save and close.

To make sure that you're choosing the correct accounts, I highly recommend seeking assistance from your accountant to secure that your books are accurate and to avoid messing up the data. They'll also be able to provide other expert ways of dealing with this situation. If you're not affiliated with one, you can use our Find an Accountant tool to look for a Pro-Advisor near your area.

Additionally, several payroll reports are available for you to generate that will give you a closer look at your employee's total wages, deductions, and tax information in a certain period. For the complete list and details on how to pull up these reports, kindly refer to this article: Run payroll reports.

Don't hesitate to always come by and post questions in the forum if you still need help. We're here to lend a helping hand. Keep safe!

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