View your Wave Payroll Clearing account balance
What your Wave Payroll Clearing account is for
Manually create a transfer to the payroll clearing account
View your Wave Payroll Clearing account balance
Your Wave Payroll Clearing account will have a $0 balance, unless there are pending employee withdrawals or tax payments. To view the balance of your Wave Payroll Clearing account:
- On the left-side menu, click Accounting > Transactions.
- At the top left, click the account dropdown menu.
- Under Money in Transit, select Wave Payroll Clearing.
What your Wave Payroll Clearing account is for
The Wave Payroll Clearing account is a money-in-transit account. Wave automatically creates the account when you set up direct deposit and automatic tax payments with Wave’s payroll feature. You can find it in your Chart of Accounts under Assets Money in Transit.
While Wave is completing employee direct deposits and tax remittances, the withdrawal transaction from your bank account won't import into Wave in real time. In the real world, the funds have been withdrawn, and your Payroll Liabilities should be reduced.
To account for this, Wave automatically creates a settlement transaction in the Wave Payroll Clearing account, equal to the amount of funds that were withdrawn from your bank. The settlement transaction is categorized under your Payroll Liabilities account. Learn more about Payroll Liabilities and settlement transactions.
Manually create a transfer to the payroll clearing account
If you use direct deposit but don’t have automatic bank transaction imports, or if a transfer was not created automatically, follow the steps below:
- If you upload bank statements to Wave, find the payroll withdrawal expense transaction, or create a new expense transaction.
- Select the category Transfer to Bank, Credit Card, or Loan, then select the Wave Payroll Clearing account.
This clears the balance in the payroll clearing account created by the settlement transaction.