Yes, you're correct. To properly categorize the deduction to an account, you need to map them correctly in the accounting preferences, CreativePrinters. Let me guide you with this.
QuickBooks automatically creates default accounts where your payroll liabilities and expenses are recorded. For a direct way to deduct the employee's debts to a current liability account, you need to update your payroll settings and choose which account the transactions should go to.
Here's how:
- Go to the Gear icon.
- Select Payroll Settings under Your Company.
- In the Preferences section, click Accounting Preferences.
- Select Edit ✎ to update a specific section.
- Enter the account name, or scroll to choose which account the transactions should go to.
- Click Save, then Done.
For detailed information about the process above, see this article: Change your accounting preferences in QuickBooks Online Payroll.
Also, I'd suggest contacting your accountant if you are unsure about the account type to be included. They can provide guidance on which account to use to ensure that the payroll mapping is accurate.
Additionally, I'll be sharing these resources that will guide you in managing deductions and payroll reports for your employees:
Feel free to contact me with any questions or concerns regarding payroll. I am more than happy to answer your questions. Take care.
