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Employee used a business credit card for an expense that should have been covered by payroll deduction.

Hi, everyone!  The owner's son contributes to the company self-funded dental account by payroll deduction (he is an employee). He had a broken tooth and used a business credit card to pay the dentist. This would have been paid by  the dental account if it had had sufficient money at the time. The dentist wanted paid right away. I'm not sure how to record this transaction in order to reconcile this credit card, since someone else handles the Dental account and I normally don't get involved. Any thoughts would be appreciated.

Best answer 3 weeks ago

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Re: Employee used a business credit card for an expense that should have been covered by payroll ...

Thanks again HoneyLynn_G, I had forgotten about Payroll Expense account. Things should be fine now!

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Re: Employee used a business credit card for an expense that should have been covered by payroll ...

Hello there, @chessiecat32.

 

We'll have to make a credit card charge and post it to the business credit card to record the employee's dental expense. It'll automatically affect the payroll side (according to the account selected), and you should be good to reconcile the account.

  1. Go to the Banking menu and choose Enter Credit Card Charges.
  2. Select the credit card account.
  3. Go to the Expense tab and enter the necessary details.
  4. Click Save & Close.
    1.PNG

For further information about credit card charges, you can check the link. I also suggest consulting an accountant to help and guide how to record these work. Your accountant can provide more expert advice in dealing with this concern and selecting the payroll account to affect.

 

You should be able to reconcile the account after that, @chessiecat32. Let me know how it goes or if you have follow-up questions. I'm here to help you more.

Frequent Explorer **

Re: Employee used a business credit card for an expense that should have been covered by payroll ...

Thank  you, HoneyLynn_G. I will try it out as soon as I can.

Frequent Explorer **

Re: Employee used a business credit card for an expense that should have been covered by payroll ...

Thanks again HoneyLynn_G, I had forgotten about Payroll Expense account. Things should be fine now!