Showing results for 
Search instead for 
Did you mean: 
Level 1

Payroll deductions and credit card transactions

We have a labor company in which most of the guys work offshore. Quite often we purchase cartons of cigarettes and other various expenses on the company credit card. We then deduct that expense from said employee who asked for the item. I never felt like this transaction was set up properly and I’m trying to get the books cleaned up for our company. Any advice of what to categorize the credit card expense as? For the payroll deduction portion, I have it set up as an employee cash advance deduction. 
is that the proper way of doing it? I just want to be sure the deductions from the paychecks are linked to the same account as the purchase is being made. 

2 Comments 2

Payroll deductions and credit card transactions

Welcome and thank you for getting help with your employee's deduction, controller13!


I understand you want to have clean books. You’re actually doing a great job about adding a deduction item and ensuring it uses the account you also used to categorize the credit card purchase. We can double-check that in the  Accounting section of your payroll settings, where you'll see the accounts you use in payroll.


  1. Go to Settings ⚙, then Payroll settings.
  2. Select Edit ✎ next to Accounting
  3. See what account is assigned to Cash Advance. You can change it from there. Then, if you want to reflect that change to the previous payrolls of the employee, select Edit ✎ next to Want to update existing transactions, then add a Start Date. That date should cover the pay date of the payrolls you want to reflect that change for.


By achieving the said setup, you should see two opposing transactions in your credit card register. One from payroll and one from online banking.


I'm available for any follow-up questions or any concerns with payroll. You may also check about reconciling an account for your reference in the future. Take care!

Level 13

Payroll deductions and credit card transactions



These are considered taxable fringe benefits as defined by the IRS.  You can use that as the expense debit and payroll deduction credit.

Need to get in touch?

Contact us