Bill payment transactions generated for independent contractor payments made through payroll direct deposit cannot be edited or deleted.
When you pay independent contractor bills using direct deposit and automatically import transactions, Wave handles the bookkeeping automatically. If you manually import your transactions, only the first part of the bookkeeping is automatic.
There are 3 steps to bookkeeping a bill payment:
- Wave creates an accounts payable liability
- Wave marks the bill as paid
- The bank withdrawal is categorized
1: Wave creates an accounts payable liability
When you create a bill for your independent contractor, Wave creates a liability in your accounts payable. You can view this in your aged payable report.
2: Wave marks the bill as paid
When you choose to pay a contractor by direct deposit and the approved payroll is processed, Wave creates an expense transaction on your Transactions page. This transaction is categorized as a Payment Sent for a Bill in Wave. There is a separate transaction for each bill payment, and each of these is recorded in your Wave Payroll Clearing account.
3: The bank withdrawal is categorized
When the withdrawal transaction from your bank account imports into Wave, it is automatically categorized as a Transfer to Wave Payroll Clearing. If you manually upload your transactions, when the withdrawal transaction is uploaded, categorize it as a Transfer to Wave Payroll Clearing.
This restores the balance that was withdrawn from your Wave Payroll Clearing account.
Manually create a payroll transfer transaction
If the payroll transfer transaction was not created automatically, create the transfer transaction manually. To create the transfer transaction manually:
- Open the Transactions page.
- Find your bank-imported expense transaction. This transaction will include independent contractor amounts, regular employee amounts, and taxes.
- For the category, select Transfer to a Bank, Credit Card or Loan > Wave Payroll Clearing.
- Select Save.