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swbp
December 16, 2021
Question

Client has an employee with a pre tax deduction (not super). This amount has been going to the PAYGW account, should it not be Payroll clearing and how to fix?

  • December 16, 2021
  • 1 reply
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QB's answer to client - "They instructed me to go to banking, find the transaction

1 reply

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IntuitSheila
December 16, 2021

Hello swbp,

 

Thanks for posting in the Community!

 

You'll have to check the default account from your Payroll Settings to verify if what account is set up for that pre tax deduction. If you don't want the deduction to be posted in the Payroll Clearing account you have to set a default account for that deduction. Here's how:

 

  1. Click on the Employees tab, and click on Payroll Settings.
  2. Click on Chart of Accounts.
  3. Select Default accounts.

From here, you'll see the payroll accounts and where the payroll journals are posted. If you want to set up a specific account for the pre tax deduction, click on Deductions and locate that deduction and set the default account.

 

You can check these articles to learn more about payroll chart of accounts and matching payroll payments:

 

Feel free to reply to this thread if you need more help with QuickBooks Online. I'll be here to help you. Have a nice day!

S
swbpAuthor
December 16, 2021

Hi Sheila, thanks for your quick response.

Attached are snap shots of what shows when I follow your links to change the default payroll categories.  It does not allow me to change or add anything.

I don't do payroll in Quickbooks so am unsure of what is normal and what is not.

thanks

 

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IntuitSheila
December 16, 2021

Hi swbp, thanks for getting back to us.

 

If you're not using the payroll feature in QuickBooks Online. You can add the transaction as an expense from the Banking page if your bank account is connected to QuickBooks Online. Or you can manually record the transaction as an expense and allocate it to the payroll expense account. We'd also recommend contacting your accountant so they can provide more information on how you can properly allocate the pre-tax deduction in your QuickBooks Online account in order not to mess up your books. They're the best that can provide accounting advice about the deduction type.

 

Also, please reach out to our Customer Care Team should you need more help about how to manually record the payroll payments in QuickBooks Online. They can do screen sharing (SmartLook) with you to help check your transaction in a secure form.

 

Drop a comment below if you need more help with QuickBooks Online.

 

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