How to record bank withdrawal to pay employee in cash?
Owner of business withdrew $417 from bank account X and paid an employee in cash. How do I record this? Do I record the withdrawal using the petty cash account and then do a journal entry for show a deduction of petty cash and add to wages account?
Don’t you love when owners do things like this? You shou...
Don’t you love when owners do things like this? You should record the paycheck as normal. Make a not that the employer withdrew cash in lieu of the check. Clear it like a check. put cash in the check # place.
Re: Don’t you love when owners do things like this? You shou...
also, if you create a paycheck it will automatically deduct taxes. To stop this from happening for this one time pay, edit the Employee details Withholdings and mark as Do Not withhold.
Be sure to change this back to what it was for the next paycheck.