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person13
February 26, 2023
Question

Payroll Wages

  • February 26, 2023
  • 2 replies
  • 0 views

How do I change the paid from account on the paycheck? It is paid out of my checking account, but it shows Cash because I set it up wrong initially.  This causes the P&L to show a duplicate expense, gross payroll from Cash and the actual expense from my checking account.   If you can't change it, how do you fix this issue?

 

 

    2 replies

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    Carneil_C
    February 26, 2023

    Thanks for dropping by the Community, @person13.

     

    Beforehand, I appreciate you outlining the details of your concern and adding a screenshot to help us get on the same page. I'll help you change the account on the paycheck in QuickBooks Online Payroll.

     

    We can go to the Payroll Settings page and change the setup of your accounting preferences for your payroll from there. I'll show you how:

     

    1. Click the Gear icon and choose the Payroll setting.
    2. Go to the Accounting section. Then, click the pencil icon to expand the page.
    3. Set up the appropriate account for each payroll preference.
    4. Then, select Continue once done.

     

    On the other hand, I'd also recommend contacting our QuickBooks Online Payroll Support team to further check your previous transactions that have been duplicated due to this query when first setting it up. They can have a screen-sharing session with you and guide you on possible fixes.

     

    To learn more about this process, please review this handy article: Change your accounting preferences in QuickBooks Online Payroll. It includes insights to determine what account type you can use for your payroll transactions and procedures in case you want to change your past transactions after updating your account.

     

    I'm more than willing to help if you have any other concerns about your payroll or any processes in QuickBooks Online. I'll ensure your needs are taken care of. Keep safe always.

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    docsbp29
    February 28, 2023

    I assume the payments are doubled in QuickBooks and not taken out of the bank twice. I also assume the checking account is the real account the money comes from. If the entries are the same in both accounts just delete the entries in the cash account. If the the entries in the cash account are correct and the entries in the checking account are wrong delete the entries in the checking account. Then open each check and in the upper left hand corner you can change the account the payment comes from. In this case change the account from cash to checking and the you'll see the checks in the checking account.

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    person13Author
    February 28, 2023

    Thank you for the reply.  The amounts are not the same.  One is the gross amount $3k in the cash account and the other is the net amount $2,614.55.  On the actual pay check it doesn't allow you to change which bank account it came from.  Also, if I delete the net amount in the checking account, my bank statements will not reconcile.  Not sure what to do.  It seems like a know problem with QBs and no one knows how to fix it.

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    Ethel_A12
    February 28, 2023

    I'll help you change the paycheck paid from account, @person13.

     

    The direct transfer of paychecks to another bank account is not a possibility. As a workaround, manually journalize the payroll checks so you can utilize them to reconcile the account.

     

    You have two options: either write a new transaction for every employee or consolidate the totals of each employee's paychecks into one journal entry. You can run a payroll report (Payroll Summary, Payroll Summary by Employee, or Payroll Details) as a guide to ensure the figures are correct.

     

     

    Here's how: 

    1. Click + New on the left panel.
    2. Select Journal Entry.
    3. Under the Journal date, enter the paycheck date.
    4. From the first line, select an account from the Account field. Depending on if you need to debit or credit the account, enter the amount in the correct column.
    5. On the next line, select the other account you're moving money to or from. Depending on if you entered a debit or credit on the first line, enter the same amount in the opposite column.
    6. Check the amounts - you should have the same amount in the Credit column on one line and the Debit column on the other. This means the accounts are in balance.
    7. Enter information in the memo section to know why you made the journal entry.
    8. Select Save and new or Save and close.

     

    Please see the following page for more information on how to enter the debits and credits for wages and taxes and a sample paycheck: Manually enter payroll paychecks in QuickBooks Online.

     

    To assure the accuracy of your books, I also advise consulting an accountant about which accounts to utilize when documenting the transaction. I've also included a few articles with advice and instructions for account reconciliation:

     

     

    Feel free to click the Reply button below if you need further assistance transferring your paycheck to another bank account. I'm always here to help. Have a great day.

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