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boninm
February 11, 2025
Question

Paycheck posting error

  • February 11, 2025
  • 1 reply
  • 0 views

We have one employee who is contributing to a 401(k) out of their monthly payroll.

 

In December of 2024 we changed bank for our business, moving from Wells Fargo to Schwab.  I successfully migrated the banking relationship in QBO to Schwab, and payroll for January was debited from the Schwab account.  However, I didn't know that there was a second setting under the Payroll-> Settings-> Accounting menu that also had to be set to the proper Schwab account.  So, QBO debited the Wells Fargo account internally, and I can't reconcile my Wells Fargo account because of this error.

 

I have tried using the Payroll-> Settings-> Update Transactions option, but that did not fix the problem.

 

Is my only solution to Void the January payroll and re-enter the payroll information?  If so, what effect will this have on the bank accounts and employee payroll tracking? 

 

Many thanks in advance for your help.

 

Michel

1 reply

G
GebelAlainaM
February 11, 2025

Thank you for your detailed information regarding the incorrect payroll check posting in QuickBooks Online (QBO), @boninm. To resolve this, exclude the transaction in the bank feeds and create a journal entry to transfer the payroll to the correct account, ensuring successful reconciliation in QuickBooks.

 

First, update the correct payroll account in the Payroll Settings. Then, proceed to exclude the transactions in the bank feeds. 

Here's how:

 

  1. Go to Transactions, then select Bank Transactions.
  2. From the For Review tab, click the checkbox for the fees you want to exclude.
  3. Select Exclude.

Once done, you can now enter the payroll checks manually as journal entries so you can use them to reconcile the account. However, I recommend getting in touch with your accountant for additional guidance in recording this to ensure the accuracy of your accounts after making these changes.
 

  1. Go to the + New button.
  2. Select Journal entry.
  3. Fill in the needed details to create your journal entry.
  4. Click Save and close when done.
     

Here's an article you can read to learn about the basic in creating a journal entry: Create a journal entry in QuickBooks Online.

Additionally, you can check out this article for future reference in pulling up reports to check if the amounts are accurate in your QBO account: Run payroll reports.

Take advantage of QuickBooks' expert assistance today to optimize your payroll setup and keep your business running efficiently. Our knowledgeable experts help you configure your payroll settings accurately, ensuring all employee details, tax rates, and deductions are correctly entered. This expert guidance helps prevent costly errors and ensures your team is paid promptly and accurately.

If you need further assistance about your payroll settings after our transition to Schwab, feel free to reply in this thread. We're always here to help you.

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