Profit and Loss Report counting employee gross pay and after tax pay as both wages.

Hello @PHAYES990,

Welcome to the Community. I can clarify things about the payroll expenses calculation in the Profit and Loss report.

The report summarizes the total income and expenses in a specific period. The amount that should be shown in the Profit and Loss for payroll should be gross pay.

When debiting and crediting a paycheck, the net amount debits the bank account, and the gross pay hits the payroll expense account. However, if there are doubled amounts, I recommend reviewing the details of each paycheck.

You can view the details of the wages directly in the financial report. Just click the amount to expand and view the paychecks.

Here's how:

1. Open the Profit and Loss report.
2. Click the amount of the payroll wages.
3. View the paycheck to view the details.

Also, we have several payroll reports you can use to view useful information about your business and employees. I've attached an article you can check to view the complete list in QuickBooks: Run payroll reports in QuickBooks Online Payroll.

Let us know if you still have more questions about the income statement or the calculation of the amounts. We'll be here to lend a hand. Take care, and have a great rest of the day.