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dawz007
April 15, 2022
Solved

Paying employees

  • April 15, 2022
  • 1 reply
  • 0 views

Hello and thanks in advance for your help. When employees are paid through banking and not payroll, how do I categorize the transactions? Since my CoA doesn’t have payroll expense accounts so I just create them?

Best answer by JessT

Hello there, dawz007!

 

It's good to see you in the Community! Knowing how to track your payroll is a good start to having an accurate record. I'm happy to share information about it. 

 

You're right about creating payroll accounts to track your wage and tax expenses. I'll guide you in adding one. Then, you can follow the rest of the steps in the article about entering paychecks in QBO. It has a sample for your reference, but it's still best to seek advice from an accountant to ensure your records are correct.

 

  1. Click the Gear icon in the upper right-hand corner.
  2. Choose Chart of Accounts and click the New button.
  3. Select Expenses for the Account Type and Payroll Expense for the Detail Type.
  4. Name the account, add a description, and click Save and New to create another account.

 

Let me know if you need anything else. May you have a happy weekend and stay well!

1 reply

JessT
JessTAnswer
April 15, 2022

Hello there, dawz007!

 

It's good to see you in the Community! Knowing how to track your payroll is a good start to having an accurate record. I'm happy to share information about it. 

 

You're right about creating payroll accounts to track your wage and tax expenses. I'll guide you in adding one. Then, you can follow the rest of the steps in the article about entering paychecks in QBO. It has a sample for your reference, but it's still best to seek advice from an accountant to ensure your records are correct.

 

  1. Click the Gear icon in the upper right-hand corner.
  2. Choose Chart of Accounts and click the New button.
  3. Select Expenses for the Account Type and Payroll Expense for the Detail Type.
  4. Name the account, add a description, and click Save and New to create another account.

 

Let me know if you need anything else. May you have a happy weekend and stay well!

    D
    dawz007Author
    April 15, 2022

    I appreciate you! That’s great information, just what I needed! Even though it says paycheque, it’s the same if he pays by e-transfer, I just change the payment method, correct?

    S
    SarahannC
    April 15, 2022

    Thanks for getting back to us and asking for further clarification, @dawz007.
     

    Yes, you got it correctly. Still, I recommend following the steps and details shared by my colleague JessT. Since you don't have a payroll service, you have to proceed with creating journal entries (JE) in QuickBooks Online.

     

    If you're referring to the Description column, it's showing paycheck, so you'll know that this has been issued to pay an employee for services. Yes, you can still include an additional note about the payment method (if you want). 

     

    As advised, you can consult your accountant for further assistance about the type of accounts you'll use for them. You can utilize this link to find an accountant: QuickBooks Certified ProAdvisor.

     

    If you're referring to something else, please let us know. We'll be around to provide additional help. Stay safe and have a good one, dawz007!

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