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mainstreetnurser
Level 1

Why is my are there non legal payments in my payroll expenses on profit and loss?

why is payroll summary is different than on profit and loss?
4 Comments 4
MaryLandT
Moderator

Why is my are there non legal payments in my payroll expenses on profit and loss?

The Payroll Expenses from the Profit and Loss report shouldn't match with the amount from the Payroll Summary, mainstreetnurser.

 

The P&L statement in QuickBooks Online shows your total income, your gross profit, expenses and your net income or loss. While the Payroll Summary report only summarizes the paychecks you’ve created, including total wages, taxes, and deductions.

 

You can click on the number in the totals column to get a detailed transaction list for that Payroll Expenses. And, compare the entries from the Payroll Summary report. 

 

Please know that your Payroll Expenses from the preferences tracks your payroll wages, taxes, deductions and company contributions in your Chart of Accounts to meet your accounting needs. Check out this article for more details about this: Learn how to manage your payroll accounting settings to track your payroll transactions.

 

You can run other payroll reports as well to check other transactions. I'm adding this article to see what other report to pull up: Learn how to run, print, and customize payroll reports in QuickBooks Online Payroll.

 

Let me know if you have additional questions by commenting below. I'll be around to help you.

 

mainstreetnurser
Level 1

Why is my are there non legal payments in my payroll expenses on profit and loss?

thereare non legal payments generated by quickbooks in the column payrolls expense

mainstreetnurser
Level 1

Why is my are there non legal payments in my payroll expenses on profit and loss?

when i choose the column in profit and loss payroll expense there are quickbooks generated non legal payments. 

MariaSoledadG
QuickBooks Team

Why is my are there non legal payments in my payroll expenses on profit and loss?

Let's take a look and find out what these generated non-legal payments that you're referring, mainstreetnurser.

 

Generally, QuickBooks Online Payroll automatically creates default accounts where your payroll liabilities and expenses are recorded. You can customize how you track your payroll expenses in your chart of accounts by recording it in  a different register so you can meet your accounting needs. To add or edit your payroll account register, follow the steps below:

 

  1. Go to the Gear or Settings ⚙ icon, then Chart of accounts.
  2. Select New  to add a new one. Or search for the account you want to edit, then select Edit from the View register ▼ dropdown.
    Note: if you see the New category window instead of the Account window, you’re creating a subaccount. If you need to create a new parent account, switch to accountant view.
  3. From the Account Type ▼ dropdown, choose Expenses or Other Current Liabilities.
  4. Depending on the account type you selected, choose a Detail type.
  5. Add or rename the account name in the Name field.

 

Then, update your payroll accounting preferences. Here's how: 

 

  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.

 

To change past transactions:

  1. Select Edit ✎ next to Want to update existing transactions.
  2. Add a Start Date. We'll change all accounts except in the Bank Account section.

 

Please know that for payroll expenses and liabilities, QuickBooks won't allow you to use a different account type such as Cost of Goods Sold. To make sure you'll be able to view useful information about your business and employees, I've added this article that provides a list of payroll reports that you can use: Run Payroll Reports In QuickBooks Online Payroll.

 

If there's anything else that you need help with your payroll, let us know so we can further assist you.

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