Payroll Journal Entry for QuickBooks Desktop ASAP Help Center

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If you just purchased your QuickBooks Online subscription, you’ll see a “Get Started” button. If you are just signing up for QuickBooks Payroll, the system will ask you a few questions, such as if you require HR support and need to track employee work hours. To use the service, you have to open both the software QuickBooks and Dancing Numbers on your system.

Obviously you would not be a good bookkeeper if you did not check your work right? One way to check your work is to look at your chart of accounts and make sure all payroll liability accounts have balance of zero as they should. Another way to check your work is to look at the amount your payroll company deducted from your checking account.


When you follow the steps as stated above, you will be able to manually enter payroll in QuickBooks easily. Looks like, manually adding or entering payroll in QuickBooks seems to be easier now? Now that you have understood how to manually add or enter payroll in QuickBooks, follow the procedure accordingly. Request from your payroll service pay stubs or payroll reports for each of your employees. To enter payroll into QuickBooks, there are few descriptive steps that you need to take care of. The following section would help you to read through all the steps involved in entering payroll into QuickBooks manually.

The third-party paychecks are created by services like ADP or Paycheck outside of QuickBooks. QuickBooks Online allows you to manually enter payroll salaries and track payment totals. However, this does not create the information needed to produce W-2s for your employees. To get your year-end forms, you must work directly with your payroll service. Always keep in mind that diary entries require an understanding of debits and credits.

Things to Ponder About Before Importing Data into QuickBooks

Once you’ve got the basics of your payroll system set up, it’s time to learn how to use QuickBooks specifically. I currently have 99 percent Aruba on-premise, non-subscription based, cli/web/console interface type switches. I’m trying to order a new fiber switch but due to availability, it appears I might have to choose another brand if I don’t want to wait 4-6 we…

Select the Pay Scheduled Liabilities option and enter the liability amount for each tax category. Make sure to select the appropriate due date for each liability. Click the Review button to review the liability payments and click the Submit button to pay the liabilities. You must still track those paychecks in QuickBooks even if you use it for accounting and other services such as running payroll.


You can save a lot of time by having your payroll company build a file that can import all payroll transactions into QuickBooks. Once you get a payroll import file working it literally takes a few seconds to enter your payroll. To find out more about payroll import files for QuickBooks read this.

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Not to mention the time and frustration that you’ve relinquished by utilizing a streamlined system. This alone should be reason enough to sway you from keeping your payroll in house I hope. Luckily, there are plenty of alternative payroll software available. We recommend checking them out if you have international employees, require a lot of built-in tools or are looking for a professional employer organization.


If you haven’t already, follow the steps to create new accountsin your Chart of Accounts to track your payroll liabilities and expenses. You Credit the bank and the liability account used for tracking payroll liabilities. Also, the Debit side must be equal with the Credit side for you to Save your JE.

Step 5: Double-Check and Generate Paychecks

Working with a remote bookkeeping will still provide you with all the value you could get from an in-office bookkeeper but at a fraction of the cost. If you spot something on the list that needs to be corrected, click the employee’s name to edit. You ought to include and have a sum of all the payments and salaries.

I will breakdown all the various transactions that typically occur with outsourced payroll and tell you how to properly account for them. If you’re not sure where to find it, check out the setup guide from QuickBooks for a guide to the dashboard. This may seem like a lot of work to properly record your payroll in QuickBooks and you are correct.

Next, set up the mapping of the file column related to the QuickBooks field. Dancing Numbers template file does this automatically; you just need to download the Dancing Number Template file. If you’re more of a visual learner, there are plenty of video tutorials for QuickBooks Payroll. We’d recommend going straight to the source and using Intuit’s version, which gives you step-by-step visual instructions and the most up-to-date version of the software.

record outsourced payroll

Just fill in the data in the relevant fields and apply the appropriate features and it’s done. In addition to the aspects highlighted in the article, you can import journal entries, accountant’s changes, bank transactions, batch transactions, etc. You also have the option of importing customers, vendors, vendors list, reports, and customers. You may discover several businesses asking for your permission to provide you with a file that will enable you to import payroll data into QuickBooks on the market. Payroll is one of the best-integrated apps for tracking all accounting programs connected to your business’s bank accounts and all costs out of all the apps.

Step 1: Create manual tracking accounts

There are also better options if you’re in need of a free trial. If you’re already a QuickBooks user for other accounting processes, using a payroll add-on is by far the easiest way to start doing payroll. You won’t have to get to know a new dashboard, and you’ll have a lot of information pre-populated. If you’re looking for automated payroll and tax filing, plus next-day direct deposit, QuickBooks remains an industry-leading choice. You also need to make sure QuickBooks has all of the information it needs to make your payroll run smoothly. This is essentially employee hours and bank account information .

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The key to entering your payroll correctly is to understand the difference between gross and net payroll. Gross payroll is the total amount you pay your employees before deductions. Net payroll is what your employees are paid after deductions. These things are not payroll expenses because your employee is paying them rather than you. Before we dive into the details of how to record outsourced payroll in QuickBooks, it’s important to understand what outsourced payroll is and how it works. Outsourced payroll involves hiring a third-party service provider to handle your company’s payroll processing.

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Review it carefully and make sure all of the pay details are correct. If you have new employees or accidentally left someone out, click the “add an employee” button. You can get YTD information from the last payroll you processed for each employee and also request detailed pay reports from your previous payroll provider. You should have a separate payroll account from the checking account used for your day-to-day business operations. Keeping Record Outsourced Payroll in QuickBooks is a game of numbers.


This should match the total of direct deposit checks, the amount paid out for payroll taxes and the amount of the payroll fee. If your payroll company takes on the liability of actual payroll checks then the amount should also include that. Even though QuickBooks offers several integrated payroll services, many businesses choose to continue using an outside payroll service like ADP or Paychex. But this often leads to confusion about how to enter payroll into QuickBooks. Some choose to re-enter the entire payroll in the Employee Center. Others want to save time by entering it as a journal entry, but don’t know how to enter it correctly.

This transaction represents the amount you plain english accounting your employees, including their gross pay, taxes withheld, and any other deductions. To record this transaction, go to the Employees menu and select Pay Employees. Choose the appropriate pay period and select the employees you want to pay. Enter their hours worked and any other earnings or deductions. Make sure to select the appropriate payroll items for each transaction.

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