How does the QuickBooks Online integration work?

FAQs about Eddy's QuickBooks Online integration

Updated: April 3, 2024

How to connect your QuickBooks Online account

To connect QuickBooks Online, go to Admin settings and select the Payroll tab. On the side menu you'll see a link for Accounting integration. Click this link to view the available integrations (for now QuickBooks Online is the only option). On the QuickBooks Online card click the View button to get started.

Next you'll click the QuickBooks Online link to open a window that lets you log in and authorize connecting to your Quickbooks Online account.

Once the connection is complete, click the QuickBooks Online card to open the account mapping options.

Account mapping

Any transactions in the categories in the left column will be posted to the QuickBooks Online accounts in the right column. Click the category name in the right column to see the list of all available categories in your QuickBooks Online account. Categories that are not required will have an N/A option available. If at some point in the future you begin using an optional category, these options will need to be updated.

The following payroll categories must be mapped to a company’s chart of accounts to enable the proper flow of payroll data from Eddy's system to the QuickBooks Online general ledger. The categories that are optional can be marked in the dropdown selection as “N/A.” However, we advise you to map all categories to accounts in the event that you begin using the category in the future to prevent errors.

Category	Flow	Description	Sample Entries
Wages and Salaries	Expense, Debit	All earnings paid to employees and contractors in the pay period. (Also known as “Compensation”. )	Employee Wages & Salaries (Gross Pay excluding Reimbursements)
Contractor Payments	Expense, Debit	All earnings paid to contractors in the pay period. (Also known as “Compensation”. )	Contractor Payments (Gross Pay excluding Reimbursements)
Expense Reimbursements	Expense, Debit	All reimbursements paid to employees and contractors in the pay period.	Employee Reimbursements Contractor Reimbursements
Employer Taxes	Expense, Debit	All employer taxes for the pay period.	Employer Taxes
Employee Benefits	Expense, Debit	All benefits paid by the employer and remitted by the employer for the pay period.	Employee Benefits
Bank Account	Liability, Credit	The account that funds the amount that the employer is liable for over a given pay period.	Cash Requirement (ACH) -- including any taxes and/or garnishments paid by Check Checks, ie. Check #122 -- broken out individually
Payroll Taxes Payable	Liability, Credit	All employer taxes to be paid -- i.e. not remitted by Check.	Non-remittable Taxes
Cash Tips	Liability, Credit	All cash tips paid to employees directly	Cash Tips
Imputed Income	Liability, Credit	Other imputed income such as use of a company car or gym membership	Other Imputed Income
Other Payroll Liabilities	Liability, Credit	All employer benefits and PTDs to be paid out by the employer -- i.e. not managed by Check	Employee Benefits Liabilities Garnishments

Enabling Auto-push

When “auto-push” is enabled, then the payroll will be automatically pushed to the general ledger as a new journal entry when the payroll moves to the “processing” status from the “pending” status.

Which payrolls can be pushed to QuickBooks Online?

Only Eddy-managed payrolls can be pushed between Eddy and QuickBooks Online. Non-managed historical payrolls cannot be pushed between these systems.

Manually push a payroll to a QuickBooks Online account

Eddy does not support a manual push in the product UI.If this becomes necessary our payroll support team can assist with a manual push.

Note: Eddy does not guard against duplicate entries in the general ledger, so a manual push can lead to having duplicate entries.

Date used for the journal entry

The Journal entry’s transaction date will be the approval deadline for payrolls that are run through Eddy. This date coincides with the date that the cash requirement is pulled from your company bank account. If a payroll doesn’t have an approval deadline, the transaction date will default to the payroll’s payday.

Cash and/or accrual accounting

Eddy supports cash accounting. We recommend this method as the “cleanest” method of payroll accounting, and the easiest for most small business customers. For each payroll, we will create a single journal entry at the employer level. An entry will be created for each pull from the company’s Bank Account used to fund payroll (the cash requirement debit and each individual check paid to an employee).

Example of a journal entry

The following is an example of a journal entry:

Eddy only supports journal entries of the above structure. If you would like additional customization, a payroll journal report is available for each payroll run in Eddy. With that granularity, you should be able to construct a journal entry that is suitable for your accounting needs.

Removing an account that’s been mapped to a category

If an account is missing when a payroll entry is pushed to QuickBooks, then the entry will fail. In this situation you should complete the mapping to continue.

Expired authentication to QuickBooks Online

If your QuickBooks Online account authentication expires, then the payroll entry push will fail. You can re-authorize the QuickBooks Online account using the same tools used to add the account. From there, you will see the mappings that you had previously configured and can proceed with using this feature again.