Employees and payroll

Greetings, @elui. It is my pleasure to guide you through the process of editing old transactions in QuickBooks Online Payroll. This way, you'll be using the correct wages account so the Profit and Loss will categorize them correctly in QuickBooks.

QuickBooks Online Payroll automatically creates accounts where your payroll liabilities and expenses are recorded. In your case, you'll need to update the wage expenses first before editing the old transactions so they will fall to the correct accounts. 

Here are the different payroll account types you can use to track your Wage Expenses payroll transactions:

• Other Current Liabilities
• Expenses and Other Expenses
• Cost of Goods Sold
• Other Current Assets (Reimbursements only)
• Bank (Reimbursements only)

To update your payroll accounting settings, follow the steps below:

1. Go to the Gear icon⚙, then Payroll settings.
2. Click Edit ✎ next to Accounting. 
3. Select Edit ✎ to update a specific section.
4. Enter the name of the account, or scroll to choose which account the transactions should go to.
5. Choose Save then Done.
   
   
   

To change past transactions, follow the steps below:

1. Select Edit ✎ next to Want to update existing transactions.
2. If you receive an error "There are too many transactions to update all at once." Reduce the amount of months, weeks, or days in the period going back from today's date. For example, if you were trying to go from 10/20/2022 to 1/1/2022, reduce your look-back period to 10/20/2022 to 5/1/2022.
3. If you still receive the same error, further reduce the lookback period, for example, 10/20/2022 to 10/1/2022.
4. Add a Start Date. We'll change all accounts except in the Bank Account section.

It is possible to delete and recreate the payroll transaction to utilize the correct wages account. This will enable you to accurately allocate the wage expenses to the appropriate account. For detailed information about the process above, see this article: Change your accounting preferences in QuickBooks Online Payroll.

Furthermore, it is recommended to review the following articles for insights on how to effectively manage and personalize your payroll reports:

• Run payroll reports
• Customize reports in QuickBooks Online

If you require any further information or assistance regarding editing payroll accounts and generating payroll reports, please feel free to ask. I am readily available to provide any support you may need. Have a productive day.