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How to Record Payroll in QuickBooks Desktop

QuickBooks Desktop handles payroll journal entries differently from QBO. You can enter them manually via Company > Make General Journal Entries, or import them using the IIF file format. Here's both methods.

Method 1: Manual general journal entry in QB Desktop

  1. Go to Company > Make General Journal Entries.
  2. Set the date to the pay date.
  3. Enter the account, debit/credit amount, and memo for each line.
  4. QB Desktop will warn you if the entry is out of balance.
  5. Click Save & Close.

Method 2: Import via IIF

For recurring payroll, importing via IIF (Intuit Interchange Format) is faster. Go to File > Utilities > Import > IIF Files. The IIF format requires specific column headers — see our complete IIF import guide for the exact format.

Example payroll journal entry for QB Desktop

AccountDebitCredit
Salaries & Wages Expense$10,000.00
Payroll Tax Expense$1,153.00
Federal Withholding Payable$1,500.00
Social Security Payable$1,153.00
Medicare Payable$290.00
State Withholding Payable$300.00
Net Wages Payable$7,910.00
Total$11,153.00$11,153.00

QB Desktop vs. QBO: key differences for payroll entries

  • QB Desktop uses IIF for imports; QBO uses CSV.
  • QB Desktop account names must match exactly (no fuzzy matching on import).
  • QB Desktop doesn't have a bank feed auto-match for payroll; you'll need to manually reconcile net pay.

Automate QB Desktop payroll entries with PostBooks

PostBooks exports IIF-formatted journal entries ready for QB Desktop import. Upload your payroll CSV, PostBooks generates the IIF file with your mapped accounts — import in under 60 seconds.