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TeresaP20241
November 21, 2024
Question

Adjusting my payroll account in QB need to ask a question

  • November 21, 2024
  • 2 replies
  • 0 views

We paid employee out of operating account for a bonus, we had ADP figure up the taxes to take out of payroll acct. My owner cut the check not realizing this would be an issue but I let him know and all we can do is figure out how to fix this. 

ADP I am sure thought we were cutting the check out of the payroll acct and so they sent me the tax amount that would be deducted on the payroll acct journal. Now the journal shows he was paid out of the Payroll acct the full amount of the bonus but only the taxes really came out of the Payroll acct. How do I fix the payroll acct now as it shows he was paid out of it and not the operating account? 

Teresa

2 replies

FishingForAnswers
FishingForAnswers
November 21, 2024

@TeresaP20241  There are a few ways, but in the end, it all comes to the same; you're trying to make sure you can reconcile the bank accounts properly.

 

As the journal is already properly recognizing the payroll expenses, fixing it in QB should be as simple as transferring the proper amount from Operating to Payroll.

 

Since he wrote a check, this can be done through the Write Checks feature using the Payroll account for the account line.

 

This will cause the Operating balance in QB to lower by the amount of the check, and offset the Payroll deduction from the Journal such that the Payroll account is only lowered by the tax amount when considered as a whole.

G
GebelAlainaM
November 21, 2024

You can modify the bank account used for the paycheck to the correct bank account, @TeresaP20241. I'll be glad to provide you with the steps below.

To ensure the bank account used is the operating account, you can edit the bank account of the paycheck in QuickBooks Desktop (QBDT).

Here's how:
 

  1. Go to the Employee menu and select the Employee Center.
  2. Locate and open the employee's paycheck.
  3. From the Bank account dropdown, choose the Operating account.
  4. Click Save & Close.
     

Additionally, you can check out these articles for more details on managing payroll bank accounts and employee details in QuickBooks:
 

Moreover, if you've used payroll manually using the Journal entry, I suggest reaching out to your accountant to guide you further in making changes and adjustments to ensure it's tracked in the correct account. If you’re not affiliated with one, you can check our ProAdvisor page and we’ll help you find one from there.

I'm leaving this article for future reference in handling payroll reports, importing and exporting data in QuickBooks:
 

Tag me in the comment section if you have clarification with adjusting payroll account and other payroll concerns in QuickBooks. I'm always here to help you.

T
TeresaP20241Author
November 22, 2024

The problem with doing this is his regular paycheck is included on the Journal with the bonus. Only the bonus was a hard check cut out of the operating account and has cleared the bank. The taxes however was on the payroll side. So ADP shows all the payroll was out of the payroll account. If I do not show the bonus in QB out of the payroll account his check shows a negative balance. I do not want to to transfer the money from the Oper to the Payroll because that is wrong he was paid a check out of the Operating account. We do not have payroll checks to write we only do direct deposits for payroll, so we had to cut his bonus out of the operating account. So I am thinking maybe in QB I just let the check show a negative check even though he really got a paycheck out of payroll, because the taxes were as much as his regular paycheck. /The bonus was 10K as he is part owner and we needed to give him a check that day. 

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