QB Desktop Payroll DD reclass

Hello there, @Anonymous.

Thank you for getting back with us and provide more details about your payroll concern. Allow me to help share some insight about tracking payroll using classes in QuickBooks.

The liability check contains the net amount of all direct deposit paychecks, as well as their corresponding fees. If you wish to assign a class per payroll item, you can edit the paycheck to add the information you want. 

Please take note that, you can only assign a class to each earnings items on a paycheck. To start, let's make sure to set preferences for tracking payroll using classes. You can select Earnings Item payroll preference so you can assign one class for each earnings item on a paycheck.

After that, you can edit each paycheck and assign a different class to each earnings item. The following article contains the step-by-step process, as well as how to add the class and to identify how payroll expenses are distributed to each class: Tracking payroll expenses by class, department, or location.

Additionally, to track Addition, Deduction and Company Contribution items, you need to select the Track Expenses By Job in the settings. This way, in your reports, items are divided based on the division of the earnings items on the paycheck. 

Here's how:

1. Go to Lists menu and select Payroll Item List.
2. Double-click the item (Addition, Deduction and Company Contribution).
3. Mark the Track Expenses By Job box.
4. Click Next until you can click the Finish button.

I've added an article about liability check for additional reference: Edit direct deposit liability check.

That should do it. Keep me posted if you have an additional question about tracking payroll items by class. I'll be happy to help you further. Have a great rest of your week. 

Hi there, @Anonymous, 

Allow me to share some information about the posting accounts for your payroll taxes. 

Just to confirm, which article provided by my colleague above isn't working? If the two articles are affected, I'll pass your feedback along here on my end to help update those links. 

I appreciate you adjusting the payroll liabilities check. Just to verify, which specific taxes that you considered to be tagged as payroll expenses and as payroll liabilities? The program will recognize the accounts you've set up in the Payroll Item list. 

The employer portion of your payroll taxes will automatically post to your payroll expense account. Then, the employee portion will affect Payroll Liabilities. The items under the expense account will directly appear on your Profit and Loss report. 

When creating a liability check, there isn't a need to enter those items under the Expenses tab (see the screenshot below).

The items under the Payroll Liabilities tab will still show up on your P&L report, not just your Balance Sheet report. I've attached a screenshot below to serve as your visual guide. 

For more information about the posting accounts that'll reflect on your P&L and Balance Sheet reports, please see this helpful article: Understand QuickBooks Chart of Accounts. 

Feel free to click the Reply button if you have follow-up concerns about this or should you need anything else. I'll be around to help, @Anonymous.

When you go to edit the payroll items after payroll classes have been enabled in single user mode under preferences, there is still no option to tie payroll items to classes to update the prior reports. Also in the accountant reclassify transactions feature the payroll transactions are greyed out so you cannot reclass them from the accountants tools.

Hi there, @shortib.

Let's make sure to select the Earnings item feature so you can assign a class to each payroll item. Let me guide you through the steps.

Here's how to set preferences for tracking payroll item using classes:

1. Go to the Edit menu.
2. Select Preferences.
3. Choose Payroll & Employees.
4. Be sure that Full payroll is selected.
5. Select Job Costing, Class and Item tracking for paycheck expenses.
6. Click the Earnings item radio button.
7. Hit OK.

Once done, you can now tie the payroll items to classes. You can read this article to learn more on how to track payroll item by class: Tracking Payroll Expenses by Class, Department, or Location.

On the other hand, the accountant Reclassify Transactions tool can't be used for payroll transactions. The tool can only be used for regular transactions, like checks, invoices, or bills.

You can check out this article for the detailed information: Reclassify Transactions in QuickBooks Desktop.

As always, you can visit our QuickBooks Community help website in case you need tips and related articles in the future. 

Please know that you can always get back into this post if you have more questions. I'll keep an eye out on your response.