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June 12, 2024
Question

Can I edit payroll direct deposit that was recorded in the wrong checking account after changing checking accounts how do I fix that?

  • June 12, 2024
  • 1 reply
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Can I edit a processed DD paycheck in QBO Core that used the wrong bank account that my bank processed in the new bank account?
 

1 reply

Nicole_N
June 12, 2024

We can correct the payroll journal rather than editing a processed Direct Deposit paycheck, Sharon_G. We can do this by creating a journal entry to transfer the funds to the correct account. I'll help you with the process and ensure your payroll will be posted to the correct bank account moving forward.

 

To start, let's correct first the bank account setup from the Accounting Preferences. This way, payroll transactions will be recorded to the correct account. Here's how:

 

  1. Open your QuickBooks Online (QBO), then select Payroll Settings from the Gear icon.


     
  2. Scroll down to the Accounting section and click the edit icon.
  3. Click the edit icon from the Paycheck and payroll tax payments section.
  4. Choose the correct account from the Bank account drop-down, then Save.

 

After verifying the correct bank account,  let's create a journal entry to transfer the funds to the correct account. This step is crucial for the proper reconciliation of the accounts. Before doing so, I suggest seeking help from your accountant for the specific accounts to use and help record the entries accordingly. If you're not affiliated with one, you may check out this link: Find a ProAdvisor.

 

Here's how to create a journal entry in QBO:

 

  1. Open your QuickBooks account and click the + New button at the upper left of your screen.
  2. Select Journal entry and fill out the fields to create one.
  3. Once done, click Save and close.

 

Once done, you can run a payroll report (Payroll Summary, Payroll Summary by Employee, or Payroll Details) as your guide to ensure the amounts are accurate and posted accordingly to their proper accounts. 

 

I've added this article that you can use for future tasks when you’re ready to file and pay your payroll taxes online. This can guide you through the step-by-step process of filing your taxes: Pay and file payroll taxes and forms electronically.

 

Let me know in the comments below if you have further questions about managing your payroll transactions, Sharon_G. I'll be around to provide the necessary help.