My client has many vendors that we pay through the direct deposit in QuickBooks Online. When the transaction shows up in his bank account it is labeled as "payroll." It was not payroll, it was a vendor payment. My client has been audited by the Federal DOL and the New York DOL and is in a panic that this will cause problems in a future audit. Is there any way to change this?
Thanks for visiting QuickBooks Community, @ljdcpa.
If the vendor payment was processed through the Workers tab in QuickBooks Online, the transaction should show as a direct deposit. I recommend having your client call our Customer Care Team for assistance verifying what went wrong and why it’s showing payroll on their end.
They have tools capable of pulling up the account in a secure environment and help make necessary changes to the settings to prevent this from happening again.
Enter Phone support on the How can we help? field.
Select Get a callback on the Ways we can connect section.
Fill out the Phone number, First name and Last name, and Email address fields.
Hit Call me.
From there, they can ask for ways to rectify the posted transaction to prevent problems on the future audit. For more information about vendor direct deposit, check out this article: Pay vendors using Direct Deposit.
Please let me know how the call goes and if you need anything else. I’m always here to help. Have a good one!