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T
TeresaRB
September 6, 2024
Question

Paying cash to employees

  • September 6, 2024
  • 1 reply
  • 0 views

Hi

I currently have 7 employees on a weekly payroll.  5 of them I am fine with as it pulls through to the bank transactions; however 2 of them are paid with cash.

 

Is there anyone out there that can either talk me through how I record this, or point me in the right direction for a tutorial.  When I search in help all I get is paying a supplier in cash, which I'm fine with

 

Unfortunately our accountants do not have a member of staff that can help with payroll issues

 

Thank you in advance for your help

Teresa

1 reply

M
MAnneJ
September 7, 2024

You can create an account in the Chart of Accounts to record your employees' payroll, @TeresaRB. I'm here to provide the steps and ensure you can record them properly. 

 

Creating a cash-on-hand account in the Chart of accounts will help you track your employees' payroll paid with cash. 

 

Here's how: 

 

  1. Open your QuickBooks Online (QBO) account.
  2. Go to the Transactions, then Chart of Accounts.
  3. Select New, then enter the Account name, Account type, and all the necessary information.
  4. Once done, click Save. 

 

 

After this, you must select the account created above in the Journal Mapping in your Settings. So, when you run a payroll, the net amounts will appear as if they have been paid from the cash account. 

 

Here's how: 

 

  1. Go to the Gear icon.
  2. Select Account and settings under YOUR COMPANY.
  3. Click Payroll, then choose Journal Mapping.
  4. Enter the necessary information and ensure you select the account created above.
  5. Once done, hit Save, then Done. 

 

Additionally, you can navigate and learn more about the QuickBooks Online Core Payroll guide. 

 

If you have more questions about QBO payroll, I'd be more than happy to help you. Have a great day ahead. 

T
TeresaRBAuthor
September 18, 2024

Hi there

 

Thank you so much for responding to my question - it was really helpful

 

I have managed to follow your instructions up to confirming where the payments are coming from.  I pay with both cash and bank transfer, how do I select both payment types as it looks like I can only have one?

 

Is setting up payroll to map on the P&L individually a difficult job?  My boss would like it to show per member of staff but I feel like that might be a massive job to organise.

 

Thanks again for your help

Take care

Teresa

M
Mark_AG
September 18, 2024

Hello there, Teresa.

 

I'm glad to hear that my colleague's response was helpful! Let's tackle your follow-up questions about recording cash and bank transfer payments, and setting up payroll mapping for your Profit and Loss (P&L) statements.

 

In QuickBooks Online Core Payroll, you can record a transaction with only one payment method per expense or payroll entry. However, you can record cash and bank transfer payments separately. Here’s how you can handle this:

 

  1. Run Payroll for Cash Payments:
    • First, run payroll for the employees you are paying in cash.
    • When processing their payroll, select the cash payment account you recently created (example: Cash On Hand) to ensure the funds are tracked correctly.
  2. Run Payroll again for Bank Transfers:
    • After completing the cash payroll, rerun payroll for the employees receiving bank transfers.
    • This time, select the appropriate bank account (for example: Checking Account) for the bank transfer payments.

 

By running payroll by batch for cash and bank transfer payments, you can accurately record both types of transactions and ensure the correct payment methods are reflected in your accounts.

 

Regarding mapping payroll to your P&L statement per employee, this can be accomplished easily with QuickBooks Online Core Payroll. Here's how:

 

  1. Go to the Gear icon and select Payroll Settings.
  2. Head to the Accounting section.
  3. On that page, you can choose how you map your payroll transactions. Click the Edit icon to make changes to your mapping and hit Done to save them.

 

Moreover, you may also want to consider preparing for the year-end payroll. Feel free to check out this article: Year-end guide for QuickBooks Online Core Payroll.

 

If you have additional concerns about payroll in QBO, just let me know! I'm here to support you in getting this set up efficiently.

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