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Let me help you record the loan and repayment given to your employee in QuickBooks Online (QBO).
In QuickBooks Online, we can set up a liability account to record the loan and its payments. This account tracks what you owe. First, we need to create and set up a liability account so you can record the loan. Here’s how:
Then, follow Steps 2 and 3 to finish the process in this article: Set up a loan in QuickBooks Online. Since you don't want to deduct the loan repayment from your employee's paycheck, you can create a deposit for it.
I'll add some articles for additional details about handling accounts in the Chart of Accounts:
Keep me posted if you have other questions about recording loan payments. I'll be happy to help you again. Stay safe!
Let me help you record the loan and repayment given to your employee in QuickBooks Online (QBO).
In QuickBooks Online, we can set up a liability account to record the loan and its payments. This account tracks what you owe. First, we need to create and set up a liability account so you can record the loan. Here’s how:
Then, follow Steps 2 and 3 to finish the process in this article: Set up a loan in QuickBooks Online. Since you don't want to deduct the loan repayment from your employee's paycheck, you can create a deposit for it.
I'll add some articles for additional details about handling accounts in the Chart of Accounts:
Keep me posted if you have other questions about recording loan payments. I'll be happy to help you again. Stay safe!
Thank you for your help.
You're always welcome, msalamone.
Glad to hear that my colleague was able to help you in no time. Please know that you can post your concern here anytime.
We're always here to help. Bye for now, and have a good one!
You would set up a current ASSET account called something like "loan to employees "or "employee advances". When you loan out the funds put it to this account with the employees name. When you receive payments the payment will go back to this account. This will allow you to keep track of the balance due. It also keeps the money from showing as income as it is paid back.
Just as an FYI - loans to employees should have a written agreement and interest. I have been through several payroll audits and auditors do not like interest-free loans to employees. It's like paying your employee wages but not paying employment taxes.
What if employee defaults on loan and quits?
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