Hi there, userkdavis.

I can add some clarifications why the Unemployment Tax expense appears on the Profit and Loss report in the Cash basis method.

The cash method counts income or expenses only once you get a payment or pay a bill. If your paychecks and tax payment dates were made in August in QuickBooks Online. That's why the amount will still appear in the Cash method.

Here's another example you can review. In August, you send out a $1000 invoice, with a sales tax rate of 6%, for a grand total of $1060. You receive a $424 payment in August, and the remaining $636 in September.

• With cash basis, you owe two sales tax payments, $424 for August and $636 for September, because you received payments in both August and September.
• With accrual basis, you owe one sales tax payment of $60 in August, because you invoiced your customer in August.

You can browse again this article to give you a complete explanation: Learn more about the difference between Cash and Accrual methods and how to change between the two. It includes the example scenario I've shared above.

If you think it shouldn't appear on the Cash Basis method, you can request a payroll correction. To do so, I recommend contacting our QuickBooks Live Team so they can correct your paycheck for you.

Keep me posted if you have additional payroll concerns. I'm always right here to help you.