Available to Basic Payroll, Full Service Payroll
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If you use the desktop version of QuickBooks for your accounting software and Patriot Software to run payroll, you may want to export your payroll data into QuickBooks. An Intuit Interchange Format (IIF) file is a file specifically used to import transactions into QuickBooks. You can create this file using Patriot and then upload it to your QuickBooks, so that you have all your payroll data easily accessible.
If you use QuickBooks Online, see the help article Integrating Patriot Software with QuickBooks Online.
Choose Your Entry Export Type: Check Entry or Journal Entry
Before you set up your QuickBooks Desktop integration in Patriot, decide how you want your payroll to appear in QuickBooks Desktop. Patriot offers two Entry Export Types:
Export as Check Entry – Each employee's paycheck is imported into QuickBooks Desktop as an individual check transaction drawn from your bank account. Choose Check Entry if you want to see each paycheck listed in your QuickBooks Desktop check register, or if you want to use clearing accounts for direct deposit and tax withdrawals.
Export as Journal Entry – Payroll is imported into QuickBooks Desktop as a general journal entry that debits and credits your wage, tax, and liability accounts. Choose Journal Entry if you want a summarized accounting record of each payroll rather than individual checks in your register.
The Entry Export Type you choose changes which account fields appear on the QuickBooks Desktop setup page in Patriot. Follow the setup section below that matches your choice.
Account Name Rules for QuickBooks Desktop (Both Entry Types)
Whether you choose Check Entry or Journal Entry, every account name you enter on the Patriot QuickBooks Desktop setup page must match your QuickBooks Desktop Chart of Accounts exactly. Follow these account name rules:
Type each QuickBooks account name exactly as it appears in QuickBooks Desktop, including spaces and capitalization.
Do not include the account number or the dot before the account name.
If an account name in Patriot does not exactly match an account name in QuickBooks Desktop, QuickBooks Desktop will create a new account using the name you entered in Patriot. You would then need to fix the account in QuickBooks Desktop.
To use a QuickBooks sub-account, enter a colon (:) between the main account name and the sub-account name. Example: Payroll Expenses:Gross Wages
Setting Up Your Export for QuickBooks Desktop
Go to Settings > Payroll Settings > Payroll Integration Options.
Choose QuickBooks Desktop from your list of options.
Under Entry Export Type, select either Export as Check Entry or Export as Journal Entry.
QuickBooks Desktop Journal Entry Export
Use this section if you selected Export as Journal Entry under Entry Export Type on the Settings > Payroll Settings > Payroll Integration Options page. With Journal Entry, each payroll is imported into QuickBooks Desktop as a general journal entry.
Step 1: Choose Your Journal Entry Type
Under Journal Entry Type, choose how much detail you want in the journal entry sent to QuickBooks Desktop:
One total summary for all employees – The journal entry contains one combined line for each account (for example, one total gross pay line for the entire payroll).
Separate check detail for each employee – The journal entry contains a separate set of lines for each employee's paycheck.
Step 2: Enter Your Wage and Tax Accounts for Journal Entry
Under Wage & Tax Accounts, enter the QuickBooks Desktop account name for each of the following. Follow the account name rules described in the section "Account Name Rules for QuickBooks Desktop."
Gross Pay expense entries should be charged to: Enter the expense account for gross pay. Gross pay is the total compensation you pay to your employees before taxes and deductions.
Net Pay entries should be withdrawn from: Enter the bank account the paychecks are drawn from. Net pay is the employee's actual check amount after taxes and deductions are taken out.
Employee Tax entries should be withdrawn from: Enter the account for employee taxes. Employee taxes are the taxes you withhold from employee pay and remit on the employee's behalf.
Basic Payroll customers: Enter the liability account where you want employee tax entries applied, because you remit these taxes yourself.
Full-Service Payroll customers: Enter the asset (bank) account the taxes are withdrawn from, because Patriot collects and remits these taxes for you.
Employer Tax (Expense) entries should be charged to: Enter the expense account for employer-paid taxes. Employer taxes include the employer share of Social Security and Medicare, federal and state unemployment taxes, and any other employer-paid taxes in your state.
Employer Tax (Remittance) entries should be withdrawn from: Enter the account used to record the payment of employer taxes.
Basic Payroll customers: Enter the liability account where you want employer tax remittance entries applied.
Full-Service Payroll customers: Enter the asset (bank) account the employer taxes are withdrawn from.
Step 3: Enter Your Employee Deduction Accounts for Journal Entry
The Employee Deduction Accounts section appears only if you have at least one company-level deduction set up in your Patriot payroll account. Employee deductions are amounts withheld from employee pay, such as 401(k) contributions, health insurance premiums, or garnishments.
For each deduction listed, enter the QuickBooks Desktop liability account that the deduction should be applied to. Each deduction has its own field labeled "[Deduction Name] entries should be applied to:".
Step 4: Enter Your Company-Paid Contribution Accounts for Journal Entry
The Company-Paid Contribution Accounts section appears only if you have at least one company-level contribution set up in your Patriot payroll account. Company-paid contributions are employer-paid amounts such as employer 401(k) matching or the company portion of health insurance premiums.
For each contribution listed, enter two QuickBooks Desktop account names:
[Contribution Name] entries should be charged to: Enter the expense account for the contribution.
[Contribution Name] entries should be applied to: Enter the liability account for the contribution.
Step 5: Enter Your Non-Remitted Tax Account (Full Service Payroll Only)
The Non-Remitted Taxes field appears only for Full-Service Payroll customers located in New York or Hawaii. Patriot does not collect or remit New York State Disability Insurance (SDI), New York Paid Family Leave (PFL), or Hawaii Temporary Disability Insurance (TDI), so these taxes are exported separately.
Enter the QuickBooks Desktop liability account where non-remitted tax entries should be applied. The IIF file shows non-remitted taxes as a separate entry in QuickBooks Desktop.
Step 6: Choose Whether to Track by Location (Optional)
If you have multiple work locations set up in Patriot, you can tag each line of your IIF file with the employee's work location as a QuickBooks class. Under Track By Location Using QuickBooks Class Names, check Yes, include the work location associated with each line of my IIF file as a QuickBooks class. Your class names in QuickBooks Desktop must exactly match your location names on the Settings > Company Settings > Manage Locations page in Patriot.
Step 7: Save
Click Save to finish setting up your QuickBooks Desktop Journal Entry export.
Set Up QuickBooks Desktop Export as Check Entry
Use this section if you selected Export as Check Entry under Entry Export Type on the Settings > Payroll Settings > Payroll Integration Options page. With Check Entry, each employee paycheck is imported into QuickBooks Desktop as a separate check transaction.
Step 1: Choose Whether to Use a Direct Deposit Clearing Account
A direct deposit clearing account is a holding account in QuickBooks Desktop that temporarily records direct deposit net pay until the total direct deposit withdrawal clears your bank account. Using a direct deposit clearing account makes bank reconciliation easier because your bank statement shows one direct deposit withdrawal for the payroll, not one transaction per employee.
Under Direct Deposit Clearing Account, answer the question Do you want to use a clearing account for direct deposit? by selecting Yes or No.
If you selected Yes, enter the Direct Deposit Clearing Account Name exactly as the clearing account is named in QuickBooks Desktop.
If you select No, direct deposit net pay entries are recorded directly in the account you enter for Net Pay in Step 3.
Step 2: Choose Whether to Use a Tax Clearing Account
A tax clearing account is a holding account in QuickBooks Desktop that temporarily records payroll tax withdrawals until the tax withdrawal clears your bank account.
Under Tax Clearing Account, answer the question Do you want to use a clearing account for tax withdrawals? by selecting Yes or No.
If you selected Yes, enter the Tax Withdrawal Clearing Account Name exactly as the clearing account is named in QuickBooks Desktop.
If you select No, tax withdrawal entries are recorded directly in the account you enter for Tax Withdrawals in Step 3.
Step 3: Enter Your Wage and Tax Accounts for Check Entry
Under Wage & Tax Accounts, enter the QuickBooks Desktop account name for each of the following. Follow the account name rules described in the section "Account Name Rules for QuickBooks Desktop."
Gross Pay expense entries should be charged to: Enter the expense account for gross pay. Gross pay is the total compensation you pay to your employees before taxes and deductions.
Net Pay entries should be withdrawn from: Enter the bank account the paychecks are drawn from. Net pay is the employee's actual check amount after taxes and deductions are taken out.
Tax Withdrawals entries should be withdrawn from: Enter the bank account your payroll taxes are withdrawn from.
Employer Tax (Expense) entries should be charged to: Enter the expense account for employer-paid taxes. Employer taxes include the employer share of Social Security and Medicare, federal and state unemployment taxes, and any other employer-paid taxes in your state.
Step 4: Enter Your Employee Deduction Accounts for Check Entry
The Employee Deduction Accounts section appears only if you have at least one company-level deduction set up in your Patriot payroll account. Employee deductions are amounts withheld from employee pay, such as 401(k) contributions, health insurance premiums, or garnishments.
For each deduction listed, enter the QuickBooks Desktop liability account that the deduction should be applied to. Each deduction has its own field labeled "[Deduction Name] entries should be applied to:".
Step 5: Enter Your Company-Paid Contribution Accounts for Check Entry
The Company-Paid Contribution Accounts section appears only if you have at least one company-level contribution set up in your Patriot payroll account. Company-paid contributions are employer-paid amounts such as employer 401(k) matching or the company portion of health insurance premiums.
For each contribution listed, enter two QuickBooks Desktop account names:
[Contribution Name] entries should be charged to: Enter the expense account for the contribution.
[Contribution Name] entries should be applied to: Enter the liability account for the contribution.
Step 6: Choose Whether to Track by Location (Optional)
If you have multiple work locations set up in Patriot, you can tag each line of your IIF file with the employee's work location as a QuickBooks class. Under Track By Location Using QuickBooks Class Names, check Yes, include the work location associated with each line of my IIF file as a QuickBooks class. Your class names in QuickBooks Desktop must exactly match your location names on the Settings > Company Settings > Manage Locations page in Patriot.
Step 7: Save
Click Save to finish setting up your QuickBooks Desktop Check Entry export.
How to Export the QuickBooks Desktop IIF File from Patriot
After you save your QuickBooks Desktop settings (Check Entry or Journal Entry), you can create an IIF file any time after you run a payroll. You must export a new IIF file each time you run payroll, including single paycheck runs, because the QuickBooks Desktop integration is not automatic.
Go to Payroll > Payroll Tasks > Export Payroll.
Enter the Start Date and End Date for the pay dates you want to include in the IIF file.
Select the employees to include in the export.
For Source, include all payroll sources or select specific types of payroll information. Keep the Voided Payrolls source checked. Voided payroll entries are separate transactions from the original payroll runs, and both the original payroll transaction and the voided entry must be included so they cancel each other out in QuickBooks Desktop.
Enter a starting entry number for QuickBooks Desktop.
Click Run Export.
Save the downloaded IIF file to your computer.
How to Import the IIF File into QuickBooks Desktop
Once the IIF file is saved to your computer, import the IIF file into QuickBooks Desktop using the QuickBooks Desktop import utility for IIF files. Patriot recommends backing up your QuickBooks Desktop company file before importing any IIF file, and reviewing Intuit's help articles on importing IIF transactions.
If you need to change account names after you have downloaded an IIF file, update the account names on the Settings > Payroll Settings > Payroll Integration Options page in Patriot, then re-run the export to create a new IIF file with the corrected account names.
Troubleshooting the QuickBooks Desktop Export
The Export Payroll option is missing. If you do not see Export Payroll under Payroll > Payroll Tasks, verify that QuickBooks Desktop is selected and saved as your accounting software under Settings > Payroll Settings > Payroll Integration Options. The Export Payroll option appears only after the QuickBooks Desktop integration is set up.
QuickBooks Desktop created a new account instead of using my existing account.
The account name entered in Patriot did not exactly match the account name in QuickBooks Desktop. Compare the spelling, spacing, and capitalization of the account name in both systems, correct the name in Patriot, and re-run the export.
My location classes are not showing in QuickBooks Desktop. The class names in QuickBooks Desktop must exactly match the location names on the Settings > Company Settings > Manage Locations page in Patriot. Correct the mismatch in either system and re-run the export.
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