Why does payroll transaction tagged to correct class assigned to employee?

The accounting preferences for tracking payroll expenses by class aren't configured correctly, causing classes to not be assigned to the correct employee, Preyz.

Let’s review the payroll settings in your QuickBooks Online account to ensure the classes are set up properly. I'm here to guide you through the process.

Here's what you'll need to do:

1. Go to the Gear icon at the top and choose Payroll settings.
2. Locate the Accounting section and click the pencil icon.
3. In the Class tracking section, click the pencil icon.
4. From there, double-check and select how you want to track classes for payroll transactions. 
5. Click Save, then Done.

Once you've updated these settings, go ahead and run payroll to see if the classes are being assigned correctly now. You can also generate a payroll summary by class if you need to view payroll wages, taxes, deductions, and contributions totaled by class. For more details, you can visit this article and refer to the Create a payroll summary report by class section: Set up and track your payroll expenses by class.

For even more ease, consider exploring QuickBooks Payroll. It's designed to make the payroll process smooth and straightforward. Give it a try and see how it can add convenience to your day!

And when you need to wrap up your year, we've got a handy resource to help you with payroll tasks: Year-end checklist for QuickBooks Online Payroll.

It was great assisting you today with your payroll class tracking. I look forward to supporting you in keeping your payroll seamless whenever you need a hand. Have a great day!

Hi MiriamM,

Thank you for that run down. I doubled checked the class tracking for employees and the mapping of payroll items to chart accounts. Everything looks good to me. But still issues persist. For example, in the payroll setting, all taxes are assigned to one account (Payroll Expense: Taxes). It's weird that when I view the transaction journal, there are two-line items for which I could not directly trace on the employee payroll journal.   

Attached the snip from QBO. One line item has the class tracking, the other does not. 

I appreciate you getting back here in the Community, Preyz. Let me provide additional details about assigning classes in QuickBooks Online (QBO).

To begin, it's important to note that QuickBooks uses double-entry accounting, which means each transaction or event changes two or more accounts in the ledger. Each change involves a debit and a credit applied to one or more accounts. For most transactions, QuickBooks Online handles debit and credit entries.

Moreover, the single line item with an assigned class serves to help you clearly identify the specific class related to that item. This organization allows for easier tracking and reference, ensuring that you can quickly pinpoint the relevant classification.

For more detailed information about class tracking, please visit this article: Set up and track your payroll expenses by class.

Lastly, I'm adding this article for your future reference in case you want to make changes to a paycheck: Edit, delete, or void employee paychecks.

I'll keep this thread open if you have other concerns or questions regarding class tracking in QuickBooks Online. The Community has your back always!

Hi GenmarieM,

Thank you for getting back to me. I'm not sure is my question was conveyed correctly. However, my concern is not on the debits and credits, but the class tracking which has missing class. In the snip I shared here, expense transactions (debits) highlighted in blue do not have while others have class assigned. So I'm kind of wondering why? Coz it supposed to follow the class assigned to the employee. Unless QBO online is not pulling the class assigned to the employee? Still does not make sense on my end. Please help me. 

We truly value your attention to detail, @Preyz, and appreciate your adherence to the instructions provided. You can adjust class assignments in the transactions before payroll is processed. Let's delve a bit deeper into this.

One potential reason why the class assigned to the employee isn't appearing in the Transaction Journal could be that you added it after running your payroll. No worries, though! You can expect to see it appear in your upcoming payroll runs.

If the class still isn't assigned after you run your report again, I recommend reaching out to our customer support team as we can't access private account details here in the Community due to security purposes since it's a public forum. They has the right tools to securely look into your account, review your previous case, and keep you updated.

Additionally, you might find this article helpful for tracking your payroll expenses in QuickBooks Online Payroll: Track your payroll expenses by class

Also, as you approach year-end, here’s a useful resource for completing your payroll tasks: The year-end checklist for QuickBooks Online Payroll

Furthermore, I recommend you to Explore QuickBooks Payroll to improve your experience with QBO Payroll. Our skilled team of professionals is available to offer prompt and customized support related to your employee and wage issues. They can help you make the most of your plan's features, and manage your accounts

If you have any more questions or concerns about assigning classes in QBO, please feel free to Reply below, and I'll be happy to assist. Stay safe!