New updates to the Chart of Account mapping options in QuickBooks Online Payroll enable you and your clients to map liabilities and expenses to better align with their business and how they do their books, as well as reduce manual journal entries.
Previously in payroll settings, wage expenses could only be mapped to expense type of accounts, while liability and assets could only be mapped to liability type of accounts, except advance and loan repayments, which could be mapped to asset type only. However, in some instances, the user needs to be able to map a pay type to a liability account, especially for tips or reimbursements. On the flip side, deduction and contribution pay items need to be mapped to an asset/expense account.
Because we have removed many payroll account mapping restrictions from payroll settings, you now have more flexibility when it comes to which chart-of-account type you would like payroll items to be mapped to. For example, you will now be able to map pay items, such as reimbursements and tips, liability accounts, assets, and even clearing bank accounts. This update is applicable to QuickBooks Online Core, Premium and Elite at no additional cost.
For more information on how to use this updated feature, see Using account mapping in Online Payroll or watch the video below.