Switching from QuickBooks and Setting up Payroll in AccountEdge

Step 1: Exporting Data from QuickBooks

QuickBooks transaction data cannot be directly converted into an AccountEdge company file (.myo files). However, you can export critical payroll-related data in CSV or tab-delimited formats, clean it up, and prepare it for reference during re-entry in AccountEdge. 

See our other articles about Converting from QuickBooks and using the Migration Tool to bring IIF file data (which can include Employee Card Information) into AccountEdge seamlessly. 

Note: AccountEdge cannot import reports or actual paycheck data — these exports are for reference only when manually entering data into AccountEdge.

Key Reports to Export from QuickBooks:

Export your reports for the current payroll year up to the point where you switch to AccountEdge (e.g., Jan 1 – June 30 if switching mid-year).

How to Export a Report from QuickBooks:

1. Open the desired report (e.g., Payroll Summary)
2. Set the correct date range
3. Click Excel > Create New Worksheet, then select your preferred output option, most likely Create new worksheet > in new workbook.
4. Open the exported file in Excel or Google Sheets

Reminder: These exports will not be imported into AccountEdge payroll. Instead, they help you:

• Rebuild employee records
• Recreate YTD paycheck history
• Ensure accurate liability balances
• Enter summary-level payroll data for tax reporting

Step 2: Formatting & Importing Data into AccountEdge

AccountEdge does not support importing payroll history, paychecks, or payroll reports. Payroll-related data must be brought in manually through either:

• Process Payroll (preferred): Records valid payroll entries and populates liability and tax reports
• General Journal Entries (only suggested if not doing payroll through AccountEdge but want to track your Payroll amounts via General Ledger, Balance Sheet & P&L): For accounting-only purposes (does not populate payroll or tax forms) - This option will not display any payroll amounts in the Pay Liabilities window. It also will not show amounts in any AccountEdge Payroll reports or Aatrix reports.

There Is No "Payroll > Pay History" Import Option

AccountEdge has no menu for importing payroll history. The only import paths are:

• Cards > Employee Cards
• Accounts > Chart of Accounts
• Jobs
• Activities

Use the IIF import tool to bring List data into AccountEdge.  You will not find a menu for File > Import > Payroll Data because AE does not have a direct payroll import option. You can use the above import options to your advantage to build your file’s foundation. Once that’s imported, creating Payroll Categories, Adjusting Employee Card files, Creating Paychecks and so on, will be easier.

Why it matters:

Re-entering Paychecks Is Mandatory for Reporting to get accurate:

• W-2s/T4s and Aatrix eFiling (US Only)
• 941 quarterly filings (and comparable forms for Canada)
• Payroll tax liability balances

You must re-enter actual paychecks (either individually or summarized monthly/quarterly) using Payroll > Process Payroll.

Step 3: Setting Up Payroll Categories (Wages, Taxes, Deductions)

Payroll Categories are required for AccountEdge to calculate pay, apply taxes, and track deductions or employer contributions. Without them, you cannot process payroll.

Payroll Category Types in AccountEdge

Note on Taxes:

• You do not need to create tax categories manually
• AE includes preloaded federal/state/local tax categories
• Tax rates are auto-applied based on Work Code and Residence Code (set in employee card)

Deduction Categories & Multiple Rates:

AccountEdge does not support variable deduction rates within one category. If employees have different deduction amounts:

• You must create separate deduction categories per rate
• Example: One category for “Health - $25” and one for “Health - $50”
• If 6 employees all have the same rate, you can assign them the same category

Linked Accounts Setup:

• AccountEdge creates default liability and expense accounts (Setup > Linked Accounts > Payroll Accounts) when you start a new company file
• You can use:
  • Default "Payroll Withholding"
  • Or create your own accounts (e.g., "401(k) Liability")
• Link accounts under each payroll category before processing any payroll

Assigning Categories to Employees:

1. Go to Card File > Cards List > Employee
2. Click into employee > Payroll Details
3. Assign:
   1. Wage category (e.g., Hourly Pay)
   2. Taxes auto-apply from Work/Residence Codes
   3. Deductions (select correct rate-based category)
   4. Employer Expenses (e.g., FUTA)
4. Repeat for each employee

Step 4: Mid-Year Transitions, Entering Existing Payroll Data Before Switching to AccountEdge

If you're switching payroll systems mid-year, re-entering previous paychecks ensures AccountEdge shows accurate YTD totals for wages, taxes, and deductions. This is critical for:

• Internal payroll reports
• 941s and W-2s through Aatrix (US only)
• Pay Liabilities tracking

Entry Methods for Catch-Up Payroll:

Either method 1) or 2) must be done via Payroll > Process Payroll to populate AccountEdge tax reports and the Pay Liabilities window. 
Example: Enter one paycheck per month or quarter per employee, including the full totals for that time period.

Method 3) General Journal Entry - AE users should avoid using journal entries alone for historical payroll. Only use this if you’re not actively doing Payroll through AccountEdge. This will not reflect in any payroll reports, but will reflect in your general ledger, Balance Sheet, Profit & Loss, and Account Transactions reports.

Step 5: Verifying Payroll Setup Before First Live Run

Setup Checklist:

• Employee Cards: Wage, deduction, and tax codes set
• Payroll Categories: Properly created and linked
• Tax Setup: Work/Residence Codes assigned
• Accounts Linked: Payroll Withholding, Wages, Liabilities
• Year Setup: Go to Setup > Payroll & 1099 Information
• Tax Tables: Updated from AccountEdge or Aatrix
• Historical Payroll: Fully re-entered (if switching mid-year)

Optional but Recommended: Run a Test Payroll

1. Go to Payroll > Process Payroll
2. Select a test employee
3. Enter a small paycheck amount
4. Click Record to post
5. Verify:
   1. Tax calculations
   2. Deductions
   3. Liability posting

How to Delete a Test Paycheck:

1. Go to Payroll > Transaction Journal
2. Filter by date
3. Find the test check
4. Select it > Open it by double-clicking or clicking on the double arrow on the left > Edit (top toolbar) > Delete Transaction

Step 6: Running Live Payroll in AccountEdge

After finalizing setup and verification, begin regular payroll processing using:
Payroll > Process Payroll

Each paycheck recorded here will:

• Populate payroll reports
• Track YTD wages and taxes
• Feed into the Pay Liabilities window
• Feed into Aatrix payroll forms (e.g., W-2, 941)

Recommended Post-Payroll Reports:

All reports are found under AccountEdge > Reports > Index to Reports:

• Register Detail
  Shows gross pay, net pay, and all deductions/taxes for each employee
• Register Summary
  Summarizes totals across all employees for the period
• Payroll Summary
  Breaks down totals by wage/tax/deduction categories
• Tax Liabilities
  Shows how much is owed per tax agency)
• 941 Report
  Quarterly federal report — available via Aatrix (US Only) or Index to Reports

Step 7: Paying Liabilities & Tracking Tax Behavior

AccountEdge's Pay Liabilities window only populates from processed paychecks.

Methods That Do NOT Populate the Liability Window:

Proper Method:
Use Payroll > Process Payroll to:

• Enter historical pay (summary or detail) Summary = 1 paycheck per Quarter
  or per month per employee Detail = Every single paycheck entered per
  employee
• Populate Pay Liabilities with correct agency/tax groupings
• Feed accurate data to Aatrix and 941/W-2 forms

Once live paychecks are recorded, use Payroll > Pay Liabilities to handle all payments to tax agencies and benefit providers.

What Are Payroll Liabilities?

• Employee withheld taxes (Fed/State/Medicare/Social Security)
• Employer-side taxes (e.g., FUTA, SUI)
• Withheld deductions (e.g., Health, 401k)
• Other payroll-linked obligations

Where to Access:
Go to: Payroll > Pay Liabilities
This window is populated only by paycheck transactions processed through Payroll > Process Payroll.

If liabilities are missing here, it usually means:

• Paychecks weren’t entered through the payroll module
• Payroll category is incorrectly setup
• Paycheck has incorrect wage, tax, or deduction amounts

How to Pay a Liability in AccountEdge:

1. Go to Payroll > Pay Liabilities
2. Filter by: 
   1. Type (Tax, Deduction, Employer Expense)
   2. Supplier (IRS, State, Insurance Provider)
   3. Date Range
3. Select one or more line items
4. Confirm:
   1. Payment Date
   2. Bank Account
   3. Memo (e.g., "Q1 Federal Tax Payment")
5. Click Record

What Happens:

• A Pay Liabilities transaction is created (not Spend Money)
• The liability account is reduced
• Payment is recorded in Transaction Journal > Disbursements

Avoid These Methods:

Always use Payroll > Pay Liabilities to ensure accuracy and compliance.
 

Step 8: Quarterly, Year-End Reports & Compliance (W-2s, 940/941, Aatrix - US Only)

Once your final payroll for the year has been recorded, AccountEdge allows you to generate and print year-end payroll forms using AccountEdge’s Payroll Forms Service powered by Aatrix Payroll Forms. 

This includes:

• W-2 and W-3 forms for employees and the SSA
• 940 and 941 federal forms
• State reconciliation and wage detail reports
• Other State/Local Payroll Forms

These forms are created and displayed using a companion program called FormsViewer, which installs with AccountEdge.

Where to Begin

Go to: Payroll > Prepare Payroll Tax Forms
This will launch FormsViewer, the application that displays your payroll forms. Upon launch, a setup wizard will walk you through selecting the correct form, tax year, and EIN.
If you’re seeing blank forms or experiencing display issues, scroll down to the Troubleshooting section.

Updating FormsViewer (Aatrix Software)
Aatrix (FormsViewer) must be kept up to date to ensure forms display correctly and data populates accurately.

How to Update FormsViewer:
• On Windows:

1. Open AccountEdge
2. Go to Payroll > Prepare Payroll Tax Forms
3. In the FormsViewer window, click Help > Check for Updates
4. Follow the on-screen prompts

• On macOS:

1. Launch FormsViewer from the Applications folder
2. From the top menu, choose FormsViewer > Check for Updates
3. Install the latest package as instructed

Always run updates before preparing year-end forms or switching between tax years.

Required Before You Begin

Make sure:

• All paychecks for the calendar year are recorded using Payroll > Process Payroll
• All payroll categories are properly set up with the correct rates before recording paychecks
• You’ve run and reviewed(recommended):
  • Payroll Summary Internal AE report
  • Quarterly 941 Reports Internal AE report
  • Tax Liabilities Internal AE report
• Employee cards are fully completed with names, SSNs, addresses, and correct tax settings

Common Forms Available in FormsViewer

When clicking Payroll > Prepare Payroll Tax Forms > you will need to select State or Federal in the dropdown, then select the appropriate Payroll Year (should be auto-selected based on your current payroll year in AccountEdge) > Select the desired form > Display and proceed through the setup Wizard.

About Payroll Forms Service and eFile Options

Payroll Forms Service (PFS)

PFS is sold and supported directly by AccountEdge (there may be times when you are required to work with Aatrix support):

• $99/year for 1 EIN
• $149/year for multiple EINs

With PFS, you can generate and print all federal and state payroll forms in official formats. These can be manually mailed to the IRS, SSA, or state agencies.

eFiling with Aatrix

If you want to eFile:

1. First subscribe to PFS (Payroll Forms Service) through AccountEdge
2. Then enroll for an eFile package through Aatrix directly
3. Aatrix handles eFile submissions and support

If issues occur during the eFile process, contact Aatrix Support, not AccountEdge. AccountEdge support covers printed forms and PFS access only.

Troubleshooting FormsViewer Issues