Question

QuickBooks is recording both the gross paycheck amounts and the net amounts on my P&L. How do I fix this and prevent it from happening again?

Forum|Forum|2 years ago
October 3, 2023
1 reply
25 views

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QuickBooks Online

Level 5

Greetings, steven. I have some ideas to share regarding the information showing on your Profit and Loss (P&L) report in QuickBooks Online.

Before anything else, I want to ask where did you see the Net Pay amounts? This way, we can look into it further and guide you through what to do.

The Payroll Expenses area of your P&L report should ideally only reflect the Gross Wage and Employer Paid Taxes. If you see the net figure in that particular field,I suggest clicking on the amount hyperlink to review the transactions associated with it.

Note: Below is only an example report. Nonetheless, you can use it as a reference in drilling down the net amount.

Finally, I recommend reaching out to your accountant in case there are any journal entries or other transactions that may need to be deleted or modified in order to rectify this issue. This will help ensure that your books are well-organized and maintained in proper order.

Once you're good with this, you can also explore this useful guide about fixing discrepancies on your account balances: Reconcile an account in QuickBooks Online.

Keep me posted if there's anything else I can help you with your payroll transactions or reports. I'll be right here to assist you. Take care!

S

steven-maus87-gmAuthor

Hello! I'm seeing the net amounts in my Wages account, under Payroll Expenses, just as the screenshot shows. We have been using QB since June, and that's how it has been every payroll we've run. There are listing for the gross amounts, showing the employee's name and DD designation, and then the net amount paid is also listed (the bank feed for our linked checking account automatically feeds them into our QB).

So it looks like QB creates the payables for the gross amounts, and then QB imports the net amounts from the bank feed. And both remain in our Payroll Expenses > Wages account, effectively overstating payroll expenses by a huge amount.

Does that explanation make sense? Please let me know if there is a payroll setting that we can change? Or if there's a workaround for this scenario? Thank you!

Nicole_N

QuickBooks Team

Thanks for your follow-up on this, Steven. I recognize the issue you're facing having an overstatement of payroll expenses in your wages account when running a P&L report in QuickBooks Online (QBO). Allow me to share some insights about the possible reasons for this and route you to the best support you need.

First off, please know that if the transaction that was downloaded from your bank already exists in QuickBooks, then instead of categorizing it, you may have the option to match, add, or view multiple matches to avoid duplicates.

Moreover, I suggest you double-check the setup of your employees if these are accurate and alter things that are needed. However, if there are things that really need to be corrected but you're unable to do so like deleting and recreating some paychecks, or if it already involves multiple paychecks, then it's best to reach out directly to our Payroll Support team. They have all the necessary tools to pull up your account securely and make corrections if needed.

Here's how you can reach out to them:

Go to the Help icon in the top right-hand corner.
Select Search, then press the Contact Us button.
Enter your question in the box and hit Continue.
Choose the best way you'll want to reach out to us.

Please consider checking our available hours to make sure we address your concern timely.

Don't hesitate to leave a reply if you have other QuickBooks concerns. The Community team is here to assist.

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