Reconciling payroll to P&L in QB Desktop

Hello, Amberwaves95.

I'll help you in reconciling payroll transactions in QuickBooks Desktop.

Using a third-party payroll service, you must enter those paychecks into QuickBooks. Before we proceed, ensure you've set up an expense account to track the Payroll Expense for Wages and Taxes. I'll show you how.

1. Go to the Lists menu, then select Chart of Accounts.
2. From the Account ▼dropdown, click New.
3. Choose an expense account type, then select Continue.
4. Complete the account details.
5. Hit Save & Close.
6. Repeat the same process for the other expense account.

Then, create the following liability accounts below:

• Payroll Liabilities: Federal Taxes (941/944)
• Payroll Liabilities: Federal Unemployment (940)
• Payroll Liabilities: [State] SUI/ETT
• Payroll Liabilities: [State] PIT/SDI

Once done, you can create a journal entry to record your employee's deduction, contribution, and liabilities. Check out this article for more details: Create a journal entry in QuickBooks Desktop for Windows or Mac.

If you're unsure about which posting account to debit and credit, I recommend contacting your accountant. They can assist you with the entries to ensure that your books remain accurate.

You can also read this resource for more insights about reconciling payroll in QuickBooks: How to reconcile payroll.

Don't hesitate to reply if you have further questions about the reconciliation process. We're always available to help you.