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Also keep in mind that this only one way to record this information. If you do payroll in-house using QuickBooks, this is how I would track this situation, keep in mind that I’m anal and want to see this information quickly – just by looking at the Chart of Accounts and not having to run any special and/or modified reports to see balances. Creating a custom withholding authorization form in the QuickBooks Letters function would help to automate this process – I’ll cover this in another blog post. If it were me, I would make sure that I clearly indicated the date that debt to the company occurred, what Vendor was involved, details about what the charge was for (meaning if the employee purchased a specific tool, indicate what that tool was), and the terms of the repayment.
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Jo makes a very valid point – make sure that you provide the employee with an withholding authorization form for the repayment.Rondi, I’d be pretty ticked if my employees took personal privileges with my debit/credit card or revolving charge accounts with my vendors! If you are a business owner, make sure you are reviewing the statements each month and know what your employees are charging where.But then again, check with your state if deductions other than mandated are even allowed.
RECORDING PERSONAL EXPENSES IN QUICKBOOKS CODE
39 code “reimbursement” and make the deduction amount positive (reimbursement from employees) instead of negative (reimbursements to employees). Erring on the safe side, I would rather have the employee authorize the deduction formally rather than just a simple note on the receipt. Your payroll representative or the ADP website should be able to provide you with a withholding authorization form to authorize any deduction from their pay.
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Dee Bradshaw from Accurate Bookkeeping Services said that the repayment by the employee should be a deduction from Net Wages.But don’t advances require the taxes to be taken out? Should I get check breakdown and subtract from net wages instead or treat as a loan?įirst of all, I’d like to say that there were some great responses to this initial question: How do I record this? What they did before was to subtract the amount from the gross wages when called into ADP, so it’s kind of a pay advance. There are oftentimes material expenses for the company on the same receipt. Sometimes the workers purchase tools on the company American Express card and write TOC for “Take Out of Check” on the receipt. I am bookkeeper for a construction company.
RECORDING PERSONAL EXPENSES IN QUICKBOOKS HOW TO
This question came up on a discussion list that I belong to over the weekend and I thought “hey, what a great blog post and how to tip this would make”! So here goes!