Thanks for posting in the Community, Von-1.

The PAYG Payable and PAYG Withholdings Payable are default accounts when the payroll feature is enabled, and you've set up your GST settings in QuickBooks Online.

Let's check also your default payroll chart of accounts to see if they are mapped to the correct account. Here's how:

1. Click on the Payroll tab.
2. Click on the Payroll Settings.
3. Click on Chat of Accounts.
4. Click on Default accounts.
5. Check if your accounts is mapped correctly.

If you are seeing an incorrect figure in your payroll journals, let's check on the account and tax code used on them. Here's how:

1. Click on the Transactions tab in QBO.
2. Click on the Chart of Accounts and locate the Payroll Clearing or Wage expense account where your payroll journals are imported.
3. Locate one of the payroll journals affected.
4. Let's make sure that the PAYGW Withholding Payable is used.

Make corrections on the payroll journal to correct the posting of the accounts.

For reference you can also check this link to learn more about the default accounts for payroll: Set up and configure payroll chart of accounts. 

When I orginally set up payroll the default account for PAYG was PAYG Liability, After I completed the BAS  the journal created By Quickbookds allocated the PAYG Payable to PAYG Withholdings Payable. Then I changed the payroll chart of accounts so that PAYG is now allocated to PAYG Withholdings Payable. This now allows the PAYG Withholding Payable account to get to zero instead of an amount in PAYG Payable and a credit amount in PAYG Witholdings Payable for the same amount.

Can you confirm that PAYG Withholdings Payable is the correct account for PAYG in the payroll defaults.

Hi Von-1,

Thanks for getting back to us. Yes, that is the correct account for allocating PAYGW Withholdings. After finalizing a pay run the payroll journal will show a Credit to the PAYG Withholdings Payable account.  

Hi Von-1,

How did you change the payroll chart of accounts so that PAYG is now allocated to PAYG Withholdings Payable. In my case PAYG Withholdings Payable is not an option to choose from under PAYG Liability Account dropdown selections.

Figured it out eventually. The account PAYG Withholdings Payable can be added by Import Accounts function at the top right!

Great to hear that you figured it out, Dengster! I'm glad you were able to add the PAYG Withholdings Payable account using the Import Accounts function in the Payroll tab> Payroll Settings> Chart of Accounts. It's always satisfying to find a solution.

For your reference, you may also check this article: Set up and configure payroll chart of accounts.

If you have any more questions or need further assistance in the future, feel free to reach out. We're here to help!

Thanks for keeping us in the loop.