What to do when you start processing payroll in AccountEdge partway through the year
If you start processing payroll in AccountEdge after your payroll year has already begun — for example, partway through the year — you'll need to catch up your payroll records so AccountEdge shows accurate year-to-date totals for wages, taxes, and deductions.
Getting this right matters for:
Internal payroll reports
W-2s and 941s through Aatrix (US only)
Pay Liabilities tracking
Entry Methods for Catch-Up Payroll
There are three ways to enter historical payroll. Which one you choose depends on how much reporting detail you need going forward.
Option 1: Process Payroll (Zero-Dollar Paychecks)
Re-enter each historical paycheck through Payroll > Process Payroll using the original check dates and amounts. This is the most thorough method — every paycheck populates payroll reports, Pay Liabilities, and Aatrix forms.
Best for: businesses that need full payroll reporting history and accurate Pay Liabilities tracking
Time investment: highest — one entry per paycheck per employee
Option 2: Beginning Balance Adjustment
Enter a single lump-sum paycheck per employee covering all year-to-date wages, taxes, and deductions. This gets the totals right for W-2s without entering every individual check.
Best for: businesses that need accurate year-end forms but don't need per-paycheck detail in reports
Time investment: moderate — one entry per employee
Option 3: General Journal Entry
Post year-to-date payroll totals as journal entries directly to the general ledger.
Best for: getting Balance Sheet and P&L numbers right only
Important: journal entries do not populate payroll reports, Pay Liabilities, or Aatrix forms — so W-2s and 941s won't reflect these amounts
Verify Your Setup
Before running live payroll, confirm everything is posting correctly:
Run a Payroll Summary report and compare it to your prior system's year-to-date totals
Check Pay Liabilities to confirm outstanding balances match what you actually owe
Review a few employee cards to confirm wages, tax settings, and deductions are correct
Run a Test Paycheck
Payroll > Process Payroll
Select a test employee
Enter a small paycheck amount
Click Record
Verify tax calculations, deductions, and liability posting look correct
Deleting a Test Paycheck
Payroll > Transaction Journal
Filter by date
Find the test check
Open it, then Edit (top toolbar) > Delete Transaction
Next Steps
Once your setup is verified and any catch-up entries are recorded → Running Payroll & Paying Liabilities