I use QBO for payroll. I enter payroll as normal. Take the report and complete an ACH direct with my bank. How do I handle the entry that is generated by the bank?

Hi there, @jhenderson1. I'd be delighted to help you categorize your payroll transactions properly.

When you connect your bank accounts, QuickBooks automatically downloads the latest available transactions. You can review your downloaded payroll entry and match it with your paycheck record. This links them together so you don't get duplicates.

It's possible that some of them are added instead of being matched. This is why your wage expenses show overstated in the P&L report. If this was the case, simply undo your categorization from the Banking page. Let me show you how:

1. Go to the Banking menu.
2. Choose tile for the bank or credit card account you downloaded the transaction.
3. Click the Categorized tab.
4. Find the transaction you want to unmatch and select Undo from the Action column.

Once done, you can follow the steps from this article to find their correct match. If you're still unable to find the discrepancies from the P&L report, reach out to your accountant. That way, they can review your transactions and ensure your books are accurate. They can also provide you with further assistance in categorizing your downloaded payroll entries. 

For more in-depth information about bank feeds in QuickBooks, refer to these articles:

• Tips for Working in QuickBooks Online’s Bank Feed: Matching Transactions
• Categorize and match online bank transactions

Fill me in if you need any further assistance while working with bank feeds, @jhenderson1. I'm always here ready to help. Have a wonderful day.