Gift Card as Bonus

Let me share a few details, JeffDean.

You can match them if you used the credit card account when you created the paper check. However, if you used a different one, you can exclude the downloaded transaction instead. Here's how:

1. Click Banking, then go to the Banking tab.
2. Go to the For review tab.
3. Select the transaction, then click Exclude.

It'll be added to the Excluded tab. If you wish to delete it permanently, here's how:

1. On the Excluded tab, select the transaction.
2. Click Delete.

Once done, you can continue categorizing the transactions.

Feel free to let us know if you have other banking concerns. We're just around to help you. Take care!

I'm not clear on what you mean by "if you used the credit card account when you created the paper check"  - when I ran the payroll I have two options 1) direct deposit or 2) paper check.  Since I gave employees a gift card I don't want to direct deposit and double their bonus so I chose paper check.  When I go to the banking section for the credit card I used to buy the gift cards and I choose Match nothing shows up.

Since buying the gift card was an expense and payroll is an expense it would seem like I need to make an entry to tie the purchase of the gift card to the payroll item and account for the "paper check" that the payroll system thinks I wrote.

Thanks for getting back to us, @JeffDean.

Based on the information you've shared, yes, you can create a Journal Entry (JE) to tie the purchase of the gift card to the payroll item and account for the check.

Before we proceed, if you're uncertain what accounts to credit and debit when creating a JE, it would be best to consult your accountant for guidance.

Here's how:

1. In QuickBooks Online (QBO), go to the + New option at the top left to create a Journal Entry.
2. Enter the necessary information in the desired fields and columns.
3. Verify the amount, then hit Save and close at the bottom to complete.

For more insights about recording JEs in QBO, I suggest checking out this article for future reference: Create a journal entry in QuickBooks Online.

I'm also adding this article that tackles managing payroll in QuickBooks: Get started with Payroll.

Reach out to me in the comment section below if you have any other questions or concerns. I'll be here to help. Have a good one!

How do I do this on desktop?

How do I do this in desktop?

Thank you for joining the thread. I'm here to help you Pay Employees With A Gift Card or Cash Bonus In QuickBooks Desktop Payroll.

You can follow these steps:

1. In the Other Payroll Items column, click the drop-down arrow and select Add New.
2. Select Deduction, and click Next.
3. In the Enter name for deduction window, type Net pay offset, and click Next.
4. In the Agency for employee-paid liability window, set the Liability Account to the account affected when the gift certificate payment was deposited into QuickBooks Desktop.

Then, to pay an employee bonus, first, you'll need to determine how you want to pay out the bonus, either along with their regular pay or through a separate paycheck. Next, add the bonus Pay type. Here is how:

1. Go to Lists, then select Payroll Item List.
2. Select Payroll Item, then New.
3. Choose Custom Setup, then Next.
4. Click Wage, then Next.
5. Select Bonus, then Next.
6. Enter the name of this item, then select Next.
7. Select the expense account you want the item to track, then click Finish.

For the next steps and more information, refer to this article: Pay an employee bonus.

I'll be adding these links to guide you further in the future:

• Create Bonus Paychecks In QuickBooks Desktop Payroll.
• Pay A Bonus On Separate Paychecks In QuickBooks Desktop Payroll.

For additional QuickBooks-related concerns, don't hesitate to post them here in the Community. We're always available and willing to lend a hand to your queries. Have a great day ahead.