How to record a specific expense split in QBO

bookkeeper201 · ‎August 25, 2020

Hello:). I need to split an expense in QBO - half of it going to a traditional expense account and the other half needs to reflect that it is coming out of an employees paycheck. I am trying to figure out how to do this in terms of categories/accounts. We do our payroll in another system (not in QBO). So, I am just looking to see what the best category/account is for the employee's share of the expense. My aim is to show (from an accounting standpoint), that the business is only paying out for 1/2 of the expense. Any pointers?

Ryan_M · ‎August 25, 2020

Hi @bookkeeper201,

I'll share insight on your query about recording payroll transactions in QuickBooks Online (QBO).

I suggest you use a journal entry to record your payroll transactions. Although I'm unable to point which specific accounts or categories to use, what I can do is leave this article: Recording payroll transactions manually.

It has a step by step guide on how you can create a payroll transaction. As for the accounts and categories, it's best to consult an accountant on which to use.

In case you'd like to upload bank transactions, take a look at this article: Manually upload transactions into QuickBooks Online. It's a detailed guide on how you can import bank transactions via a CSV file.

Let me know if you have other questions. You can leave it in the comments below. I'll be sure to get back to you.