The payroll expense section in the "profit and loss detail" changed to gross pay only and does not show net pay.

cartuneautorepai · ‎December 11, 2018

Previously when we looked at profit and loss detail, the payroll expense deducted all tax deductions and only showed net pay. Then something happened and it only shows gross pay.

Anonymous · ‎December 11, 2018

Deductions from an employee's paycheck are not expenses to you. They should never appear on your P&L. Only income and expense activity belongs there.

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Michelle-Long-CPA · ‎December 11, 2018

It should be gross pay + the employer's share of payroll taxes.

cartuneautorepai · ‎December 11, 2018

how can you make it show the payroll tax deductions?

Michelle-Long-CPA · ‎December 11, 2018

You can see the payroll tax deductions in the payroll liability account(s) and on reports.

cartuneautorepai · ‎December 11, 2018

I would like to know how to make payroll tax deductions show in the profit and loss detail only.

Michelle-Long-CPA · ‎December 11, 2018

They aren't an expense. Let's say you pay someone $500 gross -- that is payroll expense. The deductions for federal & state income taxes and fica & medicare are posted to payroll taxes payable (a liability account).

cartuneautorepai · ‎December 11, 2018

That is what i've been reading through my research, but previously before today, it did add tax deductions before. It always showed the net pay instead of the gross pay previously.

Michelle-Long-CPA · ‎December 11, 2018

Perhaps you were looking at it in the check register or elsewhere?

cartuneautorepai · ‎December 11, 2018

No, it was always "profit and loss detail". Thank you for trying to help anyways.

Michelle-Long-CPA · ‎December 11, 2018

Smile

Anonymous · ‎December 11, 2018

Deductions from an employee's paycheck are not expenses to you. They should never appear on your P&L. Only income and expense activity belongs there.

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pennybwight · ‎December 11, 2018

I have intuit online payroll - entered to my intuit online quickbooks. Intuit enters the payroll info that is reflected on my P & L. My P & L shows "paychecks" without deductions subtracted. I also use quickbooks - banking and paychecks withdrawn from my bank account do NOT match "paychecks" entered by intuit online payroll. Further, Intuit online payroll doesn't doesn't submit to the right correct BANK in my chart of accounts, thus adding to the confusion. It didn't, then it did, and now it doesn't again. What should I do? My payroll summary report is OK and I use that for my Sched C taxes, but it would be lovely to be able to correctly reconcile my bank account, not have duplicate entries, and especially to have a usable P & L report. Thanks in advance for your help!

Michelle-Long-CPA · ‎December 11, 2018

I don't know what level of payroll service you have, but since you said 'Intuit enters the payroll info' it sounds like you may have Full Service Payroll. I suggest you contact payroll support for help and have them answer your questions.

qbteachmt · ‎December 11, 2018

"it did add tax deductions before. It always showed the net pay instead of the gross pay previously."

Not the P&L, if payroll is set up and used correctly. The expense is Gross Wages + Employer Taxes. The Employer has a Matching amount for Social Security and Medicare, which is seen on the P&L as expense and you might have thought that was the withholding, but it is not.

You can see the difference by looking at the Payroll Summary report, if you use desktop payroll.

Twins1

So I have a general account for my business and a separate account for my payroll so do I add this to my general account or do I do payrolls account by itself like I do my general for profit and loss statement

Rubielyn_J

Thanks for joining this thread, @Twins1. Let me chime in and add some insights on how to handle your two accounts in QuickBooks.

You can use your payroll account or purchase a payroll service in QuickBooks Desktop. It's up to you as long as it suits your business needs.

If you wish to purchase a payroll service in QuickBooks Desktop, you can visit this link for more details: https://quickbooks.intuit.com/payroll/desktop/

I've also added this resource to help you set up and start using Payroll for QuickBooks Desktop: Get started with Payroll.

Let me know in the comment section if you need further assistance. I'm always around to lend a helping hand. Stay safe and healthy always.

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The payroll expense section in the "profit and loss detail" changed to gross pay only and does not show net pay.