Hello @aseymour,
Let me help you record the payment.
First off, you'll need to set up a clearing account. This will be used to move money from one bank to another since the payment was processed by a different payroll company. Here's how:
- From the left panel, click Accounting, then Chart of Accounts.
- Click the New button.
- Under Account Type, select Bank.
- Under Name, enter Clearing Account.
- Click Save and Close.
Next, add the third party company as a vendor and write check to record the transaction they made through direct deposit. See the steps below:
- Click the Plus (+) icon and select Check.
- Type in the name in the Payee field, press Enter, then click Save.
- Choose the clearing account under Category.
- Enter the Amount.
- Choose Save and close.
Once done, you can pay the vendor bill using the clearing account. Here’s how:
- Click the Plus (+) icon, then select Pay Bills.
- Choose the clearing account for the Payment Account.
- Select the bill.
- Click Save and close.
I've attached screenshots below for your reference.
![](https://lithium-response-prod.s3.us-west-2.amazonaws.com/intuit.response.lithium.com/RESPONSEIMAGE/a1c5740a-3d7a-4950-b8a5-67917ba20d21.default.PNG)
![](https://lithium-response-prod.s3.us-west-2.amazonaws.com/intuit.response.lithium.com/RESPONSEIMAGE/58fd4c79-fad4-46e9-a430-5a3d96fa6a20.default.PNG)
Please feel free to leave a comment below if you have any other concerns.