Is there a way to record a gift card (taxable compensation) in payroll?
It needs to be added as taxable and deducted as non-taxable in the pay check.
Edit the employee, click the pencil next to Pay, then "Add a new deduction", then "Other deductions", then "Cash Advance Repayment", then Gift Card under Description , then the amount, or zero if you will enter later, then OK and Done
If you will use Other Earnings and not increase the wages by the amount of the gift card , then edit the employee, click the pencil next to Pay, then the one next to "Additional pay types:, then "Even more ways to pay ... ", then "Other Earnings". Click the pencil to change the description to Gift Card Received if you want
Go to Payroll Settings > Accounting > Customize, and change the linked accounts for Gift Card to a Gift Card Clearing asset account.
If you will use Other Earnings , in Payroll Settings, click "I use different accounts for different wages" and change the linked accounts for Other Earnings to the regular wages account.
When you run payroll, a) increase the wages by the amount of the gift card or use the Other Earnings pay type, and b) click the pencil on the right of the employee, then expand "Employee deductions", and enter the amount in the Gift Card box.
When the employee uses the card post the sales entry tender type to the Gift Card Clearing asset account, to zero it out. Or after you run payroll, transfer the amount from this asset account to the liability account you usually use to track all gift cards