Select an account?

When initiating your first Core Payroll run, you'll be prompted to "Select an Account." This step requires you to choose the specific account where the payroll amounts will be recorded in your financial records. This could be either the credit or the debit side of the pay journal, depending on your specific accounting setup. I'm here to explain further to ensure the accuracy of your initial payroll setup, Richard.

When you choose a credit account, this is the bank account from which the payroll will be disbursed. This account should be credited because you are reducing its balance by paying out to employees.

For the debit side, you can select the expense accounts related to salaries, wages, taxes, and benefits. This increases the expense for the company showing that you owe this amount to your employees.

You'll only have to double-check that all accounts are correctly set up and linked, ensuring both the debit (expenses) and credit (bank account for disbursement) sides are accurate.

If unsure about account selection, consulting an accountant can ensure your setup aligns with standard accounting practices. You might want to review your setup, here's a handy article that will guide you through the process: Get Started With QuickBooks Online.

Additionally, here’s our handy guide to help navigate you through some of the key features of QuickBooks Online Core Payroll: Navigating QuickBooks Online Payroll Core.

Feel free to let me know if you have any other questions about the pay run. I'm always right here to help you.