Hello - I have spent 4 hours on the phone with QBO today (including Level 3 support, QB Live, Payroll, etc.) and not a single person was able to help me. Here's the basic issue:
Our payroll expense in our P&L is ~60% higher than it should be. This is due to QBO classifying both gross pay via QB Payroll as well as the direct deposit to our employees for net pay as a Payroll Expense. If I take all Payroll Expense transactions, we have the following labels below. If you add up everything with payroll check, you get an exact match to our payroll. However, all of the "expense" classified items add up to 60% of the Payroll check figures (mostly driven by the wages expense) and are resulting in much higher overall payroll expenses than actual.
Payroll Expense: Health Insurance
- Expense
- Payroll Check (Accurate)
Payroll Expense: Taxes
- Expense
- Payroll Check (Accurate)
Payroll Expense: Wages
- Expense
- Payroll Check (Accurate)
So my two questions are: 1) how do I fix this so it does it automatically the right way? 2) how do fix the past transactions to ensure an accurate P&L?
I assume it has something to do with creating a clearing account or something like that, just not sure what to do. Thank you
