You can associate each payroll item with a single vendor whose name appears
on checks for that liability. These names are stored in the Vendor list and are
usually tax agencies or financial institutions, but they may also be insurance
companies or other vendors.
Go to the Lists menu and click Payroll Item List.
Select the payroll item for which you need to enter a payee name.
Click Payroll Item at the bottom of the list and click Edit Payroll Item.
In the Edit Payroll Item window, verify the payroll item name and click Next.
In the Enter name of agency to which the item is paid field, enter or choose the appropriate payee
Click Next until you can click Finish.