Payroll Categories

Hi Lcoulter64,

I'm here to share more information on when to use payroll expense and clearing account as a payroll category.

Payroll Clearing is a zero-balance liability account yo use to record employee's payroll. A zero-balance account is one in which no funds remain once all checks have cleared.

On the other hand, payroll expense is the amount you pay to your employee's in the form of salaries or wages. Any compensation you give to your employees should be included as a payroll expense.

Additionally, here's a link you can review to learn how to generate payroll reports in QuickBooks Online. You can use this to view information about your business and employees.

Post again if you need further help with payroll concerns in QuickBooks. I'll be around to help more.