Either the Payroll Expenses account, or its parent account, is an inappropriate account type. Please check the account types in your company's Chart of Accounts.

I've got your back to help you process your payroll in QuickBooks Online, @lpoltron.

We'll have to ensure the payroll is mapped to their correct account types. Once they're incorrectly linked, you'll encounter the error. Also, named the account from the Chart of Accounts (COA) assets instead of liabilities.

If the issue persists, I suggest contacting our payroll support. They have more tools and resources to further investigate your account. 

Here's how:

1. Log in to your QuickBooks Online company.
2. Select the Help (?) menu.
3. Choose Contact Us.
4. Enter your concern, then select Continue.
5. Choose Start a chat or Get a callback from the next available expert.

You can also take note of their support hours so you can immediately get hold of an agent. 

Once everything looks okay, you may continue processing your payroll in QuickBooks Online. 

Feel free to visit us again if you have other payroll concerns. I'll be around to assist you. Keep safe always and take care.

Hi, @lpoltron.

Hope you’re doing great. I wanted to see how everything is going about the processing payroll concern you had the other day. Was it resolved? Do you need any additional help or clarification? If you do, just let me know. I’d be happy to help you at any time.

Looking forward to your reply. Have a pleasant day ahead!

No it isn’r resolved, but I haven’t had time to sit on a chat for an hour trying to fix it today. Can you please tell me why this error message is coming up and preventing me from paying someone? I had to remove one employee from the payroll to process the rest of the team urgently yesterday.

I can share a few details on why you get this message, @lpoltron.

The account that was assigned may have an incorrect account type. This is the main reason for getting this error message. You can follow these steps to check it:

1. Go to the Accounting menu and then select Chart of accounts.
2. Use the search box to look for the account in question.
3. Click the Triangle button from the Action column.
4. Select Edit to review the account type and detail type.
   

Once done, I suggest checking the expense accounts assigned on your Accounting Preferences page. There may have been payroll expenses like company contributions, taxes, and wages accounts that are set to a liability account type.

1. Go to the Gear icon. 
2. Select Payroll settings. 
3. Click the Preferences link on top.
4. Tap the Accounting Preferences link.
5. On the following account sections, ensure that the accounts are correct.

Though you already contacted our Payroll Support team, I still suggest getting in touch with them. They have tools to check your account and assure that if it's not resolved, then the issue will be raised to our Product Engineers to fix this in a timely manner. This way, you'll get notifications via email or phone call (a callback from an agent).

You can take a look at this handy article for more details about assigning accounts where you automatically record your payroll liabilities and expenses when running payroll: Set up Payroll account preferences.

If you're new to QuickBooks Online Payroll, see this article as your reference: Get started with Payroll. It covers how you can create paychecks, as well as pay and file federal and state taxes.

Feel free to tag my name (@Jovychris_A) in your comment below if you have other concerns about accounts assigned in your payroll preferences. I'll check on your reply here to help. Stay safe and healthy!