Overview

You can change the expense or liability account associated with a payroll item.

Note: Changes of this sort are retroactive and will affect all previous transactions. If you do not want this, you can create new payroll items to replace the old ones. This way, you can link to the correct expense or liability accounts from now onward. Be sure to switch out the payroll items in employee profiles.

Expected Outcome

The payroll item will report to the correct liability and/or expense accounts.

Assumptions

You have created a payroll item you would like to correct.

Details

To change the account on a payroll item:

  1. From the QuickBooks menu at the top, click Lists > Payroll Item List.
  2. At the lower left of the Payroll Item List, click Payroll Item > Customize Columns.
  3. From the Available Columns list, select Expense Account, and then click Add.
  4. Still from the Available Columns list, select Liability Account, and click Add.
  5. Click OK.
  6. Double-click the payroll item you want to change.
  7. In the Edit payroll item window, click Next until you reach the Expense Account or Liability Account drop-down list.
  8. Select the new expense or liability account, and click Next until you can click Finish.

Note: You can only have one expense or liability account associated with a specific item. For example, it is not possible to split Taxes into two separate expense accounts. If you need to move expenses or liabilities from one account to another, create a journal entry debiting and crediting the appropriate accounts.