Once you’ve finished the pay run, you can give your employees their payslips and pay them using cash, cheque or bank transfer. So that the payroll transactions can be automatically matched, you should pay them using the wages account you selected on the Payroll setup page. See Set up payroll.

Understanding the payroll transaction

When you finish a pay run, a transaction is recorded that allocates each part of the pay to various expense and liability accounts. To view this transaction, go to the Banking page and click Transaction History. Select your wages bank account and a date range, then double-click the transaction (marked ‘Wages’) that you want to view. A separate payroll transaction is recorded for each employee in the pay run.

When you pay your withheld PAYG to the ATO (Australia) or your withheld PAYE to the IRD (New Zealand), that Spend Money transaction will be automatically matched to the corresponding payroll transaction. See Payroll reports and past payslips for more information about how to use reports to find out how much you owe to the ATO or IRD.