Used wrong chart of account for paycheck

You can change it in the Accounting Preferences, chris_baker01.

I'm here to walk you through the process on how to do this in QuickBooks Online. Please follow these steps:

1. Go to the Gear icon, select Payroll Settings.
2. Choose the Preferences tab, then click Accounting Preferences.
3. Click the Customize button.
4. Choose the appropriate account.
5. Click OK.

I've added screenshots for your visual guide:

Once done, you can run the Profit and Loss report to see the changes.

If you need help in customizing your report, you can check out this article: Customize Report.

Please let me know if you need anything else with managing your payroll. I'll be sure to help you out.

I do not have a "Customize" button on my Accounting Preferences page (screenshot attached). I have the correct “Wage Expense Account” selected but I reselected it anyway and clicked on update but nothing changed. It did not fix my last paycheck, it still says Direct Deposit Payable, so showing as a liability instead of a wage. I also attached the report showing Oct. paycheck in correct but Dec. paycheck says Direct Deposit Payable.

Thanks for the screenshot, Chris.

Some users don't have the Customize button and can directly change the assigned accounts for wage items. I don't have one as well and I can change an assigned account. However, for your case, we won't need to change it.

All direct deposits will really post to the Direct Deposit Payable account. That's the total direct deposit amount (net pay) to be sent to your employees. The opposite side of that is the wages, salaries, and other payroll accounts. It's double posting of entries. The one side is for the total (net) and the other side is for the breakdown of the payroll wages, but each side equates to each other.

Please don't hesitate to reach out if you have other payroll questions. We have a year-end checklist article for payroll, you may want to read it to guide you in checking your payroll records for the tax season. Have a good day!