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TPDZ
May 7, 2020
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I tried to change the bank account for payroll direct deposits. QB shows my payroll came out of one bank account, but it actually came out of another. What do I do?

  • May 7, 2020
  • 3 replies
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Original commenter did not share additional details
    Best answer by RCV

    Let me help you post the Direct Deposit into your new bank account, TPDZ.

     

    When updating your account for Direct Deposit, we need to update it also in the Payroll settings. This ensures the paychecks to be processed through the new bank account and properly listed in the correct check register.

     

    Let me show you how:

     

    1. Go to the Gear icon on the top menu.
    2. Choose Payroll settings.
    3. Tick Preferences.
    4. Select Accounting Preferences.
    5. In the Checking Account drop-down arrow, choose the new bank account.
    6. Press OK. 

    For more details about changing bank account, check out this article: Change bank account information.

     

    If you have existing paychecks that are posted to the old bank account, we can enter them as a journal entry. This way, you can use them to reconcile the account.

     

    You can either combine all of the employees' paycheck totals into one journal entry or create a separate entry for each employee. To make sure the amounts are accurate, you can run a payroll report for reference. 

     

    Also, I'd suggest consulting your accountant on what posting accounts you need to apply when creating a journal entry.

     

    For more details about entering the debits and credits for wages and taxes, as well as a sample paycheck, check out this article: Manually enter payroll paychecks in QuickBooks Online.

     

    I have a link here that provides you with articles about managing your payroll: https://quickbooks.intuit.com/learn-support/en-us/payroll-and-workers/07?product=QuickBooks%20Online.

     

    Fill me in if you need a hand with reconciling your accounts or any QBO related. I'll be here to ensure your success. Keep safe and healthy. 

    3 replies

    R
    RCVAnswer
    May 7, 2020

    Let me help you post the Direct Deposit into your new bank account, TPDZ.

     

    When updating your account for Direct Deposit, we need to update it also in the Payroll settings. This ensures the paychecks to be processed through the new bank account and properly listed in the correct check register.

     

    Let me show you how:

     

    1. Go to the Gear icon on the top menu.
    2. Choose Payroll settings.
    3. Tick Preferences.
    4. Select Accounting Preferences.
    5. In the Checking Account drop-down arrow, choose the new bank account.
    6. Press OK. 

    For more details about changing bank account, check out this article: Change bank account information.

     

    If you have existing paychecks that are posted to the old bank account, we can enter them as a journal entry. This way, you can use them to reconcile the account.

     

    You can either combine all of the employees' paycheck totals into one journal entry or create a separate entry for each employee. To make sure the amounts are accurate, you can run a payroll report for reference. 

     

    Also, I'd suggest consulting your accountant on what posting accounts you need to apply when creating a journal entry.

     

    For more details about entering the debits and credits for wages and taxes, as well as a sample paycheck, check out this article: Manually enter payroll paychecks in QuickBooks Online.

     

    I have a link here that provides you with articles about managing your payroll: https://quickbooks.intuit.com/learn-support/en-us/payroll-and-workers/07?product=QuickBooks%20Online.

     

    Fill me in if you need a hand with reconciling your accounts or any QBO related. I'll be here to ensure your success. Keep safe and healthy. 

    T
    TPDZAuthor
    May 8, 2020

    Since the payroll checks are shown in QB as being in " Bank Acct A" when in reality they were withdrawn from "Bank Acct B", how do I reconcile them?

      N
      Nick_M
      May 8, 2020

      Hello, TPDZ. 

       

      I'm happy to show you the steps you need to take to reconcile your payroll checks from "Bank account A" to "Bank account B." Follow along down below. 

       

      Here's How:

      1. In QuickBooks Online, select Settings ⚙ and then select Reconcile. If you're reconciling for the first time, select Get Started first and then Let's do it.
      2. From the Account ▼ drop-down menu, select the account you want to reconcile. Make sure it's the same one on your statement.
      3. Check the Last statement ending date. Make sure your bank statement starts the day after your last reconciliation.
      4. Review the Beginning balance. Make sure the beginning balance in QuickBooks matches the one on your bank statement. Here’s what to do if they don't match.
      5. Enter the Ending balance and Ending date as they're written on your bank statement. Some banks call the ending balance a "new balance."
      6. When you're ready to start, select Start reconciling.

      I'm also including a few helpful articles. The first highlights the steps above, as well as breaking down the process in more detail. I highly recommend checking it out. The second article explains what a reconciliation is, with a instructional video. 

       

      - Reconcile an account in QuickBooks Online

       

      - What's a reconciliation?

       

      If you need further assistance with anything, feel free to post down below. 

       

       

       

      **Say "Thanks" by clicking the thumb icon in a post
      **Mark the post that answers your question by clicking on "Accept as solution"

       

       

       

      M
      Mayne
      August 6, 2020

      Just got off the phone with QBO, are you kidding me all the paycheques have to be corrected individually thru a journal entry? So you change the company payroll account, QBO runs a small amount of $$ thru the new account to ensure all is well BUT neglects to tell you that there is a 2nd step to ensure when you are reconciling your accounts that the entry reflects the correct account. So now, instead of being able to quickly redirect the issued paycheque to reflect the new and correct account, I now have to manually correct.
      What a waste of my time. FIX THIS ISSUE Quickbooks!!

        M
        mtdiner
        August 16, 2020

        Quickbooks has the ability to change accounts and transfer payments for everything except payroll checks. What a failure in their system! We've been requesting this fix for months and all they offer is a cumbersome ledger transfer. Stupid. The money came out of the correct account when the checks were cashed yet they can't be reconciled because QB has them tied to the other checking account. This issue is so frustrating we are investigation other book keeping and payroll software. 

        A
        Allisont
        September 14, 2020

        I have the same problem. My payroll for the entire month of July were withdrawn on Bank A. August 1st, I changed to Bank B. 

        I am able to reconicle all transactions on Bank B. However, transactions on Bank A did not go to Bank A, but followed Bank B. Now I have tons of checks and IRS and EDD payments under Bank B. That means my Bank B is overdrawn.

        Now I went back to those transactions and click Edit to change them all to Bank A, Stupid QBO won't allow me. Why? 

        All those transactions under Bank A were withdrawn under Bank A in july. Because I changed to Bank B, those transactions changed to Bank B. Is QBO stupid or what!! 

        Someone miscalulated the configuration for QBO. Since I changed to QBO, all i have to deal with are stupidity errors. I used desktop before and had not run into such problem.

        So what I should do now?

        1. delete those transactions and re-eter them one by one under Bank A. They were w/d from Bank A to begin with. It was when I change direct deposit to Bank B, all those transactions from Bank A followed to Bank B. Insane!

        2. Will they mess up all my liabities ?

        3. Now I go back to reconcile Bank A, I can't find those transactions as they are all in Bank B. I did not put them in Bank B. QBO put them in Bank B because QBO could not configure to have them corrected .

        QBO, can you get your act together?

        What a shame!

          B
          bookkeeping61
          May 3, 2022

          I'm having a similar problem.  I changed the bank account for my payroll direct deposits.  Everything is working fine for the payroll part but the taxes keep showing as pulling from the old account even though they are actually pulling from the new account.  How do I change in QBO where the taxes should be pulling from? 

           

          Thank you.

          G
          GlinetteC
          May 3, 2022

          Thanks for joining this thread, bookkeeping61.

           

          I understand that you need to post the taxes to the correct account. I'm here to lend a hand.

           

          To update your payroll bank account, you also need to update it from the Payroll settings to correct the posting and payroll entries. 

           

          Here's how:

           

          1. Go to the Gear icon and select Payroll settings.
          2. Select Accounting, then change the bank account.
          3. Click Done.

           

          For those transactions that are posted to the incorrect account, you may create a journal entry but make sure to consult with your accountant first before doing the process to ensure your books are up-to-date.

           

          I added an article you can check if you need to run payroll-related reports: Run payroll reports.

           

          It's always my pleasure to help if you have additional payroll concerns or any other questions.

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