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Established Member

How to record a student loan reimbursement from Payroll

Hello,

I am a business owner and new in this Community. I am using Quickbooks Online Payroll and I would like to know how to register a student loan reimbursement in Payroll for one of my employee. 

I explain, I received a letter from the Loan Student Financial Department. I have to withdraw an amount on each paycheck for an employe and refund the Financial Loan Student Department. 

How I can register the loan in accounting ? And also the payment made every month to the Student Loan Financial Department ?  

Solved
Best answer 10-16-2018

Accepted Solutions
QuickBooks Team

Re: How to record a student loan reimbursement from Payroll

Hello, @Toutou and thank you for coming to the QuickBooks Community for assistance. I have some insight on recording a student loan reimbursement for your employee to pass along.

 

There are a few different ways you may need to set this up. If this is a voluntary deduction, you can simply set up a deduction on the employee's profile to deduct from their paychecks. For a garnishment, you would need to contact support and provide documentation of the ordered garnishment so that can be set up for you. 

 

To set up a deduction:

  1. In the left navigation bar, Select Workers.
  2. Select Employees.
  3. Select the employee's name.
  4. Select the pencil icon next to Pay.
  5. Add a new deduction or contribution.
    1. Select the pencil icon under Does this employee have any deductions? or Select Add a new deduction.
    2. Select the Deduction/contribution drop-down arrow, and then select New deduction/contribution.
    3. Select the Deduction/contribution type drop-down arrow, and select the type:
      • Health Insurance
      • Retirement Plans
      • Flexible Spending Accounts
      • HSA Plans
      • Other deductions
    4. Answer the relevant questions to set up the employee deduction or your company's contribution (if any) for each type.

    or

    Edit an existing deduction or contribution.
    1. Under "Does this employee have any deductions?", Select the pencil icon next to the deduction you want to edit.
    2. Make any necessary changes.
  6. Select OK, and then Select Done.

For more information on Deductions, Click here.

 

Once you have this deduction set up, you can set up the payment as an expense in your chart of accounts.

 

If you have any other questions, please feel free to reach out.

3 Comments
QuickBooks Team

Re: How to record a student loan reimbursement from Payroll

Hello, @Toutou and thank you for coming to the QuickBooks Community for assistance. I have some insight on recording a student loan reimbursement for your employee to pass along.

 

There are a few different ways you may need to set this up. If this is a voluntary deduction, you can simply set up a deduction on the employee's profile to deduct from their paychecks. For a garnishment, you would need to contact support and provide documentation of the ordered garnishment so that can be set up for you. 

 

To set up a deduction:

  1. In the left navigation bar, Select Workers.
  2. Select Employees.
  3. Select the employee's name.
  4. Select the pencil icon next to Pay.
  5. Add a new deduction or contribution.
    1. Select the pencil icon under Does this employee have any deductions? or Select Add a new deduction.
    2. Select the Deduction/contribution drop-down arrow, and then select New deduction/contribution.
    3. Select the Deduction/contribution type drop-down arrow, and select the type:
      • Health Insurance
      • Retirement Plans
      • Flexible Spending Accounts
      • HSA Plans
      • Other deductions
    4. Answer the relevant questions to set up the employee deduction or your company's contribution (if any) for each type.

    or

    Edit an existing deduction or contribution.
    1. Under "Does this employee have any deductions?", Select the pencil icon next to the deduction you want to edit.
    2. Make any necessary changes.
  6. Select OK, and then Select Done.

For more information on Deductions, Click here.

 

Once you have this deduction set up, you can set up the payment as an expense in your chart of accounts.

 

If you have any other questions, please feel free to reach out.

Established Member

Re: How to record a student loan reimbursement from Payroll

Perfect, I setup a garnishment for the loan payment. Now which transaction is generated in accounting (Quickbooks online) ? And how I can follow the loan reimbursement in Accounting ? If I have to do an expense as you preconize, which account to use ? 

QuickBooks Team

Re: How to record a student loan reimbursement from Payroll

Hey @Toutou.

 

Thanks for getting back to me. I'm happy to hear you were able to get that garnishment set up. 

 

You can go to the gear icon and then Payroll Settings and you can choose which accounts your payroll expenses will apply to. Which account to use is 100% up to you and your accountant. 

 

Let me know if you're able to get that set up properly, I'll be here.