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deb94
April 8, 2021
Question

Why use a payroll clearing account?

  • April 8, 2021
  • 2 replies
  • 0 views
I have set up a payroll account separately from my operating account. When I try to label that bank account Payroll, QB error message says there is already a clearing account with that name. Why a clearing account. Why not put transactions for payroll into the account directly?

2 replies

Rubielyn_J
Rubielyn_J
April 8, 2021

It's a pleasure to see you here, @deb94. I'm here to share some insights about payroll clearing account in QuickBooks.

 

Payroll Clearing is a default liability account for your payroll liabilities, such as taxes and deductions you withhold from your employees' pay. The two primary reasons to use a payroll clearing account are enhanced security and more efficient reconciliations and analyses. 

 

With the error you've received, someone may have set up the clearing account. To verify, we can check the Audit Log. 

 

Here's how:

 

  1. Go to the Settings ⚙ menu and choose Audit Log.
  2. Click Filter.
  3. Use the fields on the Filter panel to choose the appropriate User, Date, or Events filter to narrow the results.
  4. Click Apply.
  5. Lastly, select View in the History column to open the audit history. This tells you who made the change and what they did.

 

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

 

Hope this clarifies everything. Post again if you need further help with payroll concerns in QuickBooks. I'll be around to help more. Stay safe always.

V
VM15
November 9, 2022

Hi! I want to know how to set up and use payrolls clearing account in QuickBooks desk top. Can anyone help me with that please?

Rubielyn_J
Rubielyn_J
November 9, 2022

I'll be glad to share some steps to set up a Payroll Clearing Account in QuickBooks Desktop, @VM15.

 

A payroll clearing account is a zero-balance account that you use to record and monitor your payroll. Deductions from your bank accounts for payroll are offset by the payroll clearing account.

 

A journal entry to a payroll clearing account is a journal entry that summarizes the total expenses that are included in all net payroll checks. In other words, this is an entry that helps you determine exactly how much you are paying out in payroll in a given period. 

 

To create one, here's how:

 

  1. Proceed to the Company menu.
  2. Select Make General Journal Entries.
  3. Fill out the fields to create your journal entry. Make sure your debits equal your credits when you’re done.
  4. Click Save or Save & Close.

 

For further guidance with recording your journal entry, I suggest consulting your accountant to ensure that your book is accurate.

 

Additionally, I've got you relevant articles you can utilize in the future to help process payroll in QuickBooks:

 

 

Feel free to get back in here if you have further questions about setting up a Payroll Clearing Account in QuickBooks. I'll be happy to help. Keep safe!

Rubielyn_J
Rubielyn_J
April 9, 2021

Hi, @deb94.

 

Hope you’re doing great. I wanted to see how everything is going about the payroll clearing account concern you had the other day. Was it resolved? Do you need any additional help or clarification? If you do, just let me know. I’d be happy to help you at any time.

 

Looking forward to your reply. Have a pleasant day ahead!

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