When I run payroll using Quick Books Direct Deposit, the deductions from our checking account show up as 'for review' in our bank transactions. Why doesn't it recognize?

Let me help you categorize and match the downloaded bank transactions in QuickBooks Online (QBO), greg-longlifefle.

If you've run payroll in QBO, make sure to not create any expenses. If the wages of the employee show up on the Banking page, do a Find Match and look for the employees' paychecks. To make a match, QuickBooks looks at the following:

• Check numbers: If these match, the transactions may match.
• Amounts: If the amounts are the same, the transactions may match.
• Dates: If the transaction was recorded in QuickBooks within a few days of it clearing the bank, the transactions may match.
• Payees: If the payees are the same or if the payee in the downloaded transaction has a renaming rule to a name in QuickBooks, the transactions may match.

To check the transactions under the register:

1. Go to the Accounting menu.
2. Select Chart of Accounts.
3. Choose the specific bank, and then click View register.
4. From the Banking page, click the Find match radio button.

Also, we can turn on the Enable suggested categorization ⚙️ setting in the banking window to help auto-categorize transactions with similar bank details. Here's how: 

1. Go to Transactions, then Bank transactions (Take me there).
2. Select the tile for the account you want to review.
3. Select the For review tab to start your review.

Then, QuickBooks sends downloaded transactions to the For review tab. Review them one by one:

• If the category field is blank:
• Choose a category from the dropdown.
• Add a new category to the dropdown.
• If the category field has a category suggested by QuickBooks:
• Confirm that category
• Change that category by choosing another one from the dropdown or adding a new one.

To streamline the process, we can create a bank rule that automatically categorizes transactions for you. If the transaction already exists in QuickBooks, then instead of categorizing it, you may have the option to match, add, or view multiple matches. I've added this article that'll help you review downloaded bank and credit card transactions and put them in the correct accounts: Categorize and Match Bank Transactions in QuickBooks Online.

Moreover, you can check out this article to guide you in reconciling the accounts: Reconcile an account in QuickBooks Online.

We'll gladly back you up and provide further assistance with any additional questions about categorizing transactions. Feel free to keep us posted so we can get you covered. Have a good one!