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March 2, 2022
Question

In 2021 the majority of the year the payroll was outsourced now im trying to close the books for 2021 but need to add the payroll and tax cost before so

  • March 2, 2022
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1 reply

MarsStephanieL
March 3, 2022

Hi there, @celene12345. I'd be happy to share some information on how to enter your payroll data into QuickBooks Online (QBO).

 

You can create a journal entry to enter your employees' third-party payroll information. Let's first make sure to create the necessary expense accounts use to track your payroll expenses.

 

Here's how:

  1. Go to the Accounting menu.
  2. Select the Chart of Accounts tab.
  3. Click the New button and create an account.
  4. Choose Expense as the Account type
  5. Enter the account details.  
  6. Click Save and Close


You can repeat the same steps to create all the necessary accounts for each payroll income, deduction, contribution, and liability.  

 

After that, you can now create a journal entry to record your employees' deductions, contributions, and liabilities.

 

  1. Select + New button and choose Journal entry.
  2. Fill in the fields you'd like to record.
  3. Make sure your debits equal your credits when you’re done.
  4. Click Save or Save & Close

 

I've added an article for more details on how to create journal entries for paychecks created outside of QuickBooks: Manually enter payroll paychecks in QuickBooks Online.


I'd also recommend consulting with an accounting professional to ensure that each transaction has been assigned accurately to the accounts. 

 

In addition, you can also export the payroll data from the outsourced program and import it as journal entries by using any importer tools. If you don't have one, you can check out any Intuit integrated third-party applications.

 

Moreover, you can always refer here if you need a guide about closing your books in QBO.

 

I'll be around if you have other questions about tracking your expense transactions in QuickBooks. Take care!