Payroll Liability Setup Question

We appreciate you reaching out, @Bel10. I'll provide details to help you answer your payroll liability question and enter paychecks manually inside QuickBooks Online (QBO).

Before anything else, know that when you categorize a downloaded bank transaction inside the program, you can also select the subaccounts under the parent account. Doing this will clear them out and prevent the account from showing the increase. We'll outline the steps to get you going:

1. Access your QuickBooks Online company.
2. On the left navigational bar, click the Transactions tab.
3. Select Bank transactions.
4. Locate the bank account where you downloaded the transactions.
5. Locate and click on the transaction one at a time and then toggle the Radio button beside Categorize.
6. In the Category field, click the Dropdown arrow and then locate the subaccount that you want to use.
7. Once done, click the Confirm button.

If you wish to do it through journal entry, you can visit this handy article for further guidelines about the process: Manually enter payroll paychecks in QuickBooks Online.

Moreover, you can visit this article to help you manage accounts in your chart of accounts and keep track of your payroll data inside QBO:

• Manage default and special accounts in your QuickBooks Online chart of accounts
• Create a payroll summary report in QuickBooks

Please don't hesitate to visit the Community space anytime if you require assistance mapping your payroll accounts, bank transactions, or handling accounts in the Chart of accounts inside the program. Our team will be around to help you as soon as possible. Keep safe.