Payroll was taken from our bank account on Dec 31, but not deposited to employees until Jan 3. My Bank Rec is out by the same amount, how do I fix this?

Hey accounting280,

Reconciliation discrepancies are never fun, but knowing what's causing them is the challenging part. QuickBooks Online makes reconciliation a simple, streamlined process to minimize the amount of time required to make sure everything is balanced. It'll automatically filter the transactions outside of your statement period so you can focus on the ones that matter. You've already pinpointed the exact transaction causing the difference, and I can help you include it on your reconciliation. 

It's important for payroll transactions to be accurate, as inaccurate information can lead to unwanted surprises during tax season. Thankfully, as long as the correct bank account was chosen, there's no need to make any changes to this pay run. We simply need to clear the date filters in the reconciliation screen. It's just a few quick steps: 

1. Head to Reconcile from the Accounting section.
2. Select the Account you want to reconcile then Start reconciling.
3. By default, QuickBooks Online will apply a filter for Statement ending date, click the X or Clear filter / View all. 

You'll now be able to see transactions outside of the specified statement range. You'll just need to select your payroll, and you're all set to reconcile. Here's what the option looks like:

Let me know if there's anything else I can help you with!