I did not set up payroll correctly and the transactions did not record to the correct bank account. Is there a way to fix this?

Thanks for posting to the Community, @rc-cornerpointll.

Yes, you can merge the accounts in the Chart of accounts. In addition, these must be the same between the accounts you want to combine like it has the same account type and detail. However, we're unable to delete them permanently.

On the other hand, you can update your preferences for your payroll information to post your payroll correctly into the business checking account. 

Here's how:

1. Click the Gear icon at the top. 
2. Choose Payroll Settings. 
3. Hit the Preferences link at the top.
4. Select Accounting Preferences.
5. Pick the Customize button to edit. 
6. Go to the Bank Account section and choose the correct account in the drop-down menu. 
7. Once done, click OK.

Once you've processed payroll, QuickBooks will track it under the selected bank account. 

Meanwhile, you'll want to create a journal entry to transfer the payroll to the correct bank account. Before doing so, I recommend consulting your accountant for additional guidance in recording this. This way, we can ensure the accuracy of your books after driving these changes.

In your QuickBooks Online (QBO):

1. Go to the + New button.
2. Select Journal entry.
3. Fill in the needed details to create your journal entry.
4. Click Save and close when done.

You can reference this article for more details about using journal entry: Create a journal entry in QuickBooks Online.

Once done, run a payroll report to check if the amounts are accurate in your QBO. I've also attached some articles about tips and guides to reconciling an account: 

• Reconcile
• Year-end reconciliation

Let me know if you have any other questions. Simply click the Reply button below to add a post. Have a wonderful day.