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Level 1

How to account for employee hrs traded for materials

We have an employee who drives part time for us hauling gravel. He and the owner worked out a deal to use our truck to haul some gravel for personal use that amounted to $457.46 in exchange for hours he drove for the company to haul other gravel to job sites. We have paid the vendor for this gravel.  How do I account for this in QBO? 

I recorded the actual gravel invoices as miscellaneous until I could figure this out. 

From what I have read we are supposed to record this a compensation that will show up on his W2, does this vary by state? 

I assumed I would create a barter account, but am starting to doubt that as I don't know how to tie that to his W2.

Any help will be greatly appreciated.

1 Comment
Level 15

How to account for employee hrs traded for materials

You would treat this as a Customer Sale. You need to Pay Employees for what they are owed for work performed. You are not exchanging Banking = you Bartered.


Handle the gravel and the sale as usual. Now you have an amount owed by this Customer Name. Prepare a Sales Receipt for this and pretend to deposit to a Bank account for Clearing, or use your cash on hand account. Now this is carrying a Positive Balance of "pretend funds."


When you process payroll, you need a Net Pay Deduction item for this amount, as a type of Loan Repayment.


When you "pretend" to issue that liability check, you will "pay it" from the Clearing Bank. Now the Clearing Bank is 0.


You do it like this, because QB Online Payroll won't let you clear this through a Balance Sheet account directly.

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