---
title: "Expensing Payroll for QuickBooks Desktop"
slug: "expensing-payroll-for-quickbooks-desktop"
tags: ["Language - English", "Area - Payroll", "Area - Integrations", "Industry - Landscaping", "Type - Task (How-To)", "Role - Accountant (AR)", "Skill Level - 2 (Intermediate)", "Skill Level - 3 (Advanced)"]
updated: 2025-10-09T15:35:07Z
published: 2025-10-09T15:35:07Z
canonical: "guide.youraspire.com/expensing-payroll-for-quickbooks-desktop"
---

> ## Documentation Index
> Fetch the complete documentation index at: https://guide.youraspire.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Expensing Payroll for QuickBooks Desktop

## **Purpose**

This article provides a step-by-step guide for expensing payroll when your accounting system is QuickBooks Desktop. We'll show you how to get payroll data from Aspire to create a journal entry in your QuickBooks Desktop system.

## **Check Before Expensing Payroll**

If you are reading this article, you should have already:

1. 📑 Read *Payroll Setup for QuickBooks Desktop* [here](https://guide.youraspire.com/docs/payroll-setup-for-quickbooks-desktop).
2. 📑 Read *Syncing Aspire to QuickBooks Desktop* [here](https://guide.youraspire.com/docs/syncing-aspire-to-quickbooks-desktop).
3. 📑 Read *Exporting Payroll Hours from Aspire to QuickBooks Desktop* [here](https://guide.youraspire.com/docs/exporting-payroll-hours-from-aspire-to-quickbooks-desktop).
4. 📑 Read *Payroll Reconciliation with QuickBooks Desktop* [here](https://guide.youraspire.com/docs/payroll-reconciliation-with-quickbooks-desktop).

## **Expensing Payroll from Accrued Payroll Holding to the Profit & Loss Statement**

Payroll hours exported to QuickBooks Desktop each pay period are used to create payroll checks in QuickBooks. The gross payroll for these employees accumulates in the *Accrued Payroll Holding Liability Account* in QuickBooks.

Be sure to complete the QuickBooks payroll reconciliation before performing this process.

📑 Article Reference: The article, *Payroll Reconciliation with QuickBooks Desktop* can be found [here](https://guide.youraspire.com/docs/payroll-reconciliation-with-quickbooks-desktop).

To move the gross payroll from the *Accrued Payroll Holding* account in QuickBooks Desktop to the *Profit and Loss Statement Labor Expense Account by Division*, you will need to perform the following steps in QuickBooks Desktop:

- Go to the Balance Sheet.
- In QuickBooks Desktop, gross payroll will show in the *Accrued Payroll Holding* account. We’ll use this report to create a *Payroll Journal Entry*. Click into *Accrued Payroll Holding.*

*![](https://cdn.document360.io/5942a8d7-f3b1-4919-bdfa-d477d8498fe3/Images/Documentation/expensing-payroll-for-quickbooks-desktop-image-rzf6kgno.png?sv=2026-02-06&spr=https&st=2026-11-13T10%3A26%3A37Z&se=2026-11-13T11%3A26%3A37Z&sr=c&sp=r&sig=dYN1DTklJtF9ZnTbDGNczfcE9u42L4o%2B89FkG8aQH8E%3D)*

- We’ll need to customize this report to show specific employee names. We can do this by first clicking *Customize Report*.

![](https://cdn.document360.io/5942a8d7-f3b1-4919-bdfa-d477d8498fe3/Images/Documentation/expensing-payroll-for-quickbooks-desktop-image-962nogkj.png?sv=2026-02-06&spr=https&st=2026-11-13T10%3A26%3A37Z&se=2026-11-13T11%3A26%3A37Z&sr=c&sp=r&sig=dYN1DTklJtF9ZnTbDGNczfcE9u42L4o%2B89FkG8aQH8E%3D)

- In the Columns section of the pop-up window, unclick *Name* and click *Source Name*. Then, Click *OK*.  
  
[![](https://cdn.document360.io/5942a8d7-f3b1-4919-bdfa-d477d8498fe3/Images/Documentation/expensing-payroll-for-quickbooks-desktop-image-l9ramvno.png?sv=2026-02-06&spr=https&st=2026-11-13T10%3A26%3A37Z&se=2026-11-13T11%3A26%3A37Z&sr=c&sp=r&sig=dYN1DTklJtF9ZnTbDGNczfcE9u42L4o%2B89FkG8aQH8E%3D)](https://aspire-software.intercom-attachments-7.com/i/o/810008426/3234514f31a9cd3db669f409/KkR2fGvHL8WlYjv3nr0UWTpmZVIIQOsGUu3jjxNRqteHJo6QOoC5GQrG1dIKeSGLIpSSDqKUD3qzA6UboRhSIU9_3ZFD9L-iZO3TepLE49T2OUnwvkeL60DDbDAvbFRTJqr6RrHu1MNDP8EBLKKEBtQ?expires=1757963700&signature=6cd0ca418b48c6d5bc6728d96efabfe23fc705e798b7c7b8f05b5d055c159a15&req=fCEnFsl2mYNZFb4f3HP0gForNAh0eptZPBzF8Ws2Hv74673IrNXjORg%2FzIWh%0ACx4%3D%0A)
- Next, enter the paycheck date, not the actual pay period, in the *From* and *To* fields. These will be the same date.

![](https://cdn.document360.io/5942a8d7-f3b1-4919-bdfa-d477d8498fe3/Images/Documentation/expensing-payroll-for-quickbooks-desktop-image-vrspxicy.png?sv=2026-02-06&spr=https&st=2026-11-13T10%3A26%3A37Z&se=2026-11-13T11%3A26%3A37Z&sr=c&sp=r&sig=dYN1DTklJtF9ZnTbDGNczfcE9u42L4o%2B89FkG8aQH8E%3D)

- In Total By Field, select *Class*.

![](https://cdn.document360.io/5942a8d7-f3b1-4919-bdfa-d477d8498fe3/Images/Documentation/expensing-payroll-for-quickbooks-desktop-image-pfu57ktv.png?sv=2026-02-06&spr=https&st=2026-11-13T10%3A26%3A37Z&se=2026-11-13T11%3A26%3A37Z&sr=c&sp=r&sig=dYN1DTklJtF9ZnTbDGNczfcE9u42L4o%2B89FkG8aQH8E%3D)

The report will look like the below:

![](https://cdn.document360.io/5942a8d7-f3b1-4919-bdfa-d477d8498fe3/Images/Documentation/expensing-payroll-for-quickbooks-desktop-image-o677sv2y.png?sv=2026-02-06&spr=https&st=2026-11-13T10%3A26%3A37Z&se=2026-11-13T11%3A26%3A37Z&sr=c&sp=r&sig=dYN1DTklJtF9ZnTbDGNczfcE9u42L4o%2B89FkG8aQH8E%3D)

We’ll now use these values within this report to create our Payroll journal entry.

- Create a Payroll Journal Entry in QuickBooks Desktop
- Date the journal entry by the check date.
- Debit the gross dollars from each Class (division in Aspire) in the *Transactions by Account* list from above. For example:
  - Labor- Overhead
  - Direct Labor- Snow
  - Direct Labor- Maintenance
  - Direct Labor- Enhancements

![](https://cdn.document360.io/5942a8d7-f3b1-4919-bdfa-d477d8498fe3/Images/Documentation/expensing-payroll-for-quickbooks-desktop-image-bzvp6anb.png?sv=2026-02-06&spr=https&st=2026-11-13T10%3A26%3A37Z&se=2026-11-13T11%3A26%3A37Z&sr=c&sp=r&sig=dYN1DTklJtF9ZnTbDGNczfcE9u42L4o%2B89FkG8aQH8E%3D)

- Credit the *Accrued Payroll Holding Account* for the total dollars debited.

![](https://cdn.document360.io/5942a8d7-f3b1-4919-bdfa-d477d8498fe3/Images/Documentation/expensing-payroll-for-quickbooks-desktop-image-2jbznvw2.png?sv=2026-02-06&spr=https&st=2026-11-13T10%3A26%3A37Z&se=2026-11-13T11%3A26%3A37Z&sr=c&sp=r&sig=dYN1DTklJtF9ZnTbDGNczfcE9u42L4o%2B89FkG8aQH8E%3D)

After the journal entry is completed, the *Balance Sheet Accrued Payroll Holding* account should be $0.00.

## **Adding Additional Details for Indirect and Overhead Labor**

If you would like to enter more detail on your *Profit and Loss Statement* for overhead labor expenses, instead of coding all overhead or indirect gross payroll to one overhead or indirect expense account, you will need to create an *Hours Pivot Report* to properly summarize this information.

Use the Hours Pivot Report for Payroll Reconciliation that you created during the previous reconciliation process.

![](https://cdn.document360.io/5942a8d7-f3b1-4919-bdfa-d477d8498fe3/Images/Documentation/expensing-payroll-for-quickbooks-desktop-image-akqpuebp.png?sv=2026-02-06&spr=https&st=2026-11-13T10%3A26%3A37Z&se=2026-11-13T11%3A26%3A37Z&sr=c&sp=r&sig=dYN1DTklJtF9ZnTbDGNczfcE9u42L4o%2B89FkG8aQH8E%3D)

With that report, you will:

- Drag your division all the way to the left into the row display header section and then filter your division by your overhead division.

![](https://cdn.document360.io/5942a8d7-f3b1-4919-bdfa-d477d8498fe3/Images/Documentation/expensing-payroll-for-quickbooks-desktop-image-rvugpuhh.png?sv=2026-02-06&spr=https&st=2026-11-13T10%3A26%3A37Z&se=2026-11-13T11%3A26%3A37Z&sr=c&sp=r&sig=dYN1DTklJtF9ZnTbDGNczfcE9u42L4o%2B89FkG8aQH8E%3D)

- Add service name as a row display header after *Division* but before *Employee Name*

*![](https://cdn.document360.io/5942a8d7-f3b1-4919-bdfa-d477d8498fe3/Images/Documentation/expensing-payroll-for-quickbooks-desktop-image-36yyuu57.png?sv=2026-02-06&spr=https&st=2026-11-13T10%3A26%3A37Z&se=2026-11-13T11%3A26%3A37Z&sr=c&sp=r&sig=dYN1DTklJtF9ZnTbDGNczfcE9u42L4o%2B89FkG8aQH8E%3D)*

- You should see your report like the below:

![](https://cdn.document360.io/5942a8d7-f3b1-4919-bdfa-d477d8498fe3/Images/Documentation/expensing-payroll-for-quickbooks-desktop-image-1h3xiu6v.png?sv=2026-02-06&spr=https&st=2026-11-13T10%3A26%3A37Z&se=2026-11-13T11%3A26%3A37Z&sr=c&sp=r&sig=dYN1DTklJtF9ZnTbDGNczfcE9u42L4o%2B89FkG8aQH8E%3D)

- Make sure that you choose the correct date filters:
  - Choose the correct Year at the *Work Date Year* filter.
  - Choose the correct month at the *Work Date Month* filter.
  - Choose the correct work dates at the *Work Date* filter.
- If there are any employees or pay schedules excluded on the export, uncheck that employee at *Employee* filter or at *Pay Schedule* filter.
- Click the arrow to the left of Overhead to expand the Overhead detail
- Make sure the *Total Labor Cost* amount matches the *Overhead* dollar amount from QuickBooks Desktop.
- From the pivot report, click *Export to Excel*.  
  
[![](https://cdn.document360.io/5942a8d7-f3b1-4919-bdfa-d477d8498fe3/Images/Documentation/expensing-payroll-for-quickbooks-desktop-image-u0e22d6x.png?sv=2026-02-06&spr=https&st=2026-11-13T10%3A26%3A37Z&se=2026-11-13T11%3A26%3A37Z&sr=c&sp=r&sig=dYN1DTklJtF9ZnTbDGNczfcE9u42L4o%2B89FkG8aQH8E%3D)](https://downloads.intercomcdn.com/i/o/723780037/7eef83da6229906855fff700/image.png?expires=1757963700&signature=4022a6569d8d2c416cb28b04fb717bcc206ebb989ba2e36e227556b9039ebaff&req=cyIkEcF%2BnYJYFb4f3HP0gNXgM366eh3jUEOCDcfTW1ago62DWDA42y%2Bb0yn0%0AHyU%3D%0A)
- Use your exported file to create more detailed journal entries in QuickBooks Desktop.

## **Entering OT Premium as an Indirect Labor Expense**

📌 Note: This is an optional process and is not required! Aspire does not automatically cost OT premium to a work ticket which means it will also not show up on Profit & Loss statements in Aspire. Most customers expense to Cost of Goods Sold Labor and do not post it to an Overhead expense account.

For example:

If an employee is paid $10 per hour and $15 for OT, the OT premium is $5 per hour. The $5 per hour is not a job cost in Aspire. If an employee works 50 hours per week, and 10 hours is paid OT, the employee is paid: $550 (40 hours x $10) + (10 hours X $15) = $550. Another way to think about it is (50 hours x $10) + (10 hours x $5) = $550. The $50 OT premium is not a job cost to work tickets and will not show on any of the Profit & Loss statements in Aspire. The payroll journal entry from the Payroll Holding accounts will cost all of the $550 to cost of goods sold. If there is a need to move the $50 from cost of goods sold in QuickBooks Desktop to Indirect, you will need to do an extra journal entry.

If you are not expensing overtime premium to *Cost of Goods Sold Labor*, you will need to create a journal entry to back out the overtime premium dollars from your *Cost of Goods Sold Labor* and post it to the *Overhead Expense Account* where you want to code the overtime premium.

Use the adjusted Hours Pivot Report you used in the previous section. Filter to the entire Month instead of by pay period.

- Like before, if there are any employees or pay schedules excluded on the export, uncheck that employee at *Employee* filter or at *Pay Schedule* filter.
- Export your pivot report to Excel.  
  
[![](https://cdn.document360.io/5942a8d7-f3b1-4919-bdfa-d477d8498fe3/Images/Documentation/expensing-payroll-for-quickbooks-desktop-image-se9dsont.png?sv=2026-02-06&spr=https&st=2026-11-13T10%3A26%3A37Z&se=2026-11-13T11%3A26%3A37Z&sr=c&sp=r&sig=dYN1DTklJtF9ZnTbDGNczfcE9u42L4o%2B89FkG8aQH8E%3D)](https://downloads.intercomcdn.com/i/o/723784291/9c4acfe403fe3119b760ea43/image.png?expires=1757963700&signature=bb5bb4d18c0d69feb750a466a5c1ef7dc3b736ffad823e637a2a6e32d8780496&req=cyIkEcF6n4heFb4f3HP0gERBn7qrO2C%2Fd5gBC%2FDLH49d6u%2F%2FU%2BourK4SsPOv%0AnOU%3D%0A)
- Use the exported report to create a *Journal Entry* in QuickBooks Desktop to lower the *Cost of Goods Sold Labor* and increase the *indirect expense* for the overtime premium.

![](https://cdn.document360.io/5942a8d7-f3b1-4919-bdfa-d477d8498fe3/Images/Documentation/expensing-payroll-for-quickbooks-desktop-image-x74wowg8.png?sv=2026-02-06&spr=https&st=2026-11-13T10%3A26%3A37Z&se=2026-11-13T11%3A26%3A37Z&sr=c&sp=r&sig=dYN1DTklJtF9ZnTbDGNczfcE9u42L4o%2B89FkG8aQH8E%3D)

- Date the journal entry by the check date.
- Debit your *Indirect/Overhead* – *Labor-OT Premium*.
- Credit your *COGS – Direct Labor*.