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david-jenkins-hc
February 13, 2023
Question

Can I setup payroll without connecting to a bank?

  • February 13, 2023
  • 1 reply
  • 0 views
I'm only using QBO for "after the fact" payroll

1 reply

Nicole_N
Nicole_N
February 14, 2023

Hi there, David. I appreciate you for posting here.

 

Yes, you can set up payroll without connecting to a bank in QuickBooks Online (QBO). It depends on what QBO Payroll plan you have. If you're not sure what plan you have, follow these steps.

 

  1. Open QuickBooks Online and sign in as the Primary Admin.
  2. Go to the Gear icon, then select Account and settings.
  3. Select Billing & Subscription.
  4. The name of your payroll plan is in the second box.

 

Now you can start the setup by following these steps:

 

  1. Navigate to the Payroll menu.
  2. Select Overview.
  3. Click on Get started or Start onboarding.
  4. Follow the on-screen prompts to fill in the info requested.

 

Once you complete the Business info section, you can start adding your first employee.

 

To learn more about the process,  check out this article: Get started with QuickBooks Online Payroll.


You may visit this article to learn more about what you can do in QBO payroll: Create paychecks in online payroll.


I'll be here in the Community if you require further assistance in setting up your payroll. Stay safe, and have a good one!

S
shannonb66
February 14, 2023

Hi, 

I have the same question, but the reply here did not address it.  The reply refers to using QBO for payroll.  I think the question refers to how to categorize payroll checks when using a third-party payroll company (such as Gusto, for example).  These expenses consist of single checks in QBO, but are issued to the third-party payroll service.  So, how do we categorize that in QBO?  There is no category listed for "payroll" or "wages" or anything of the sort.

Thank you in advance for your help.

Shannon 

J
JamesAndrewM
February 14, 2023

We're glad to have you here in the Community, @shannonb66. Thanks for joining the thread.

 

Allow me to share some information that could help you categorize payroll checks when using a third-party payroll company in QuickBooks Online (QBO). 

 

You can categorize payroll checks issued to a third-party payroll service in QBO by creating a new expense account, wage, or liability expense, and use it to categorize the payments. Here's how:

 

  1. Go to the Gear icon in the top right corner and select Chart of Accounts.
  2. Click on New in the top right corner.
  3. Select Expense as the account type.
  4. Name the account Payroll Expense or a similar name.
  5. Save the account.

 

You can utilize this article for the detailed steps and additional information: Manually enter payroll paychecks in QuickBooks Online

 

To assure the accuracy of your books, I also advise consulting an accountant about which accounts to utilize when documenting the transaction. I've also included a few articles with advice and instructions for account reconciliation: Reconcile an account in QuickBooks Online

 

Feel free to get back to us if you have further questions. We're always available to handle each of your concerns. Have a great day!

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