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Change an expense or liability account associated with a payroll item
Article ID: 1000518
PrintOverview
You can change the expense or liability account associated with a payroll item.
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.
Assumptions
You have created a payroll item you would like to correct.
Expected Outcome
The payroll item will report to the correct liability and/or expense accounts.
Details
To change the account on a payroll item:
Open the payroll item.
- QuickBooks Pro and Premier: Click on Lists on the top menu bar, then choose Payroll Item List.
- QuickBooks Simple Start: Click on Payroll at the top. In the Payroll Center, click on the Setup and Maintain drop-down menu and choose View/Edit Payroll Items.
Click on the Payroll Item button (bottom left).
Click on Customize Columns.
Under Available Columns, highlight Expense Account, click Add.
Under Available Columns, highlight Liability Account, click Add.
Click OK.
Double-click the payroll item you want to change.
In the Edit payroll item window, click Next until you reach the Expense Account or Liability Account drop-down list.
Select the new expense or liability account, and click Next until you can click Finish.
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.
