Hi there, Jucker. In your case, you can consider setting up your employee as a vendor. This way, you can record the payment transaction by creating an expense. Keep in mind that you'll need to pay them outside of QuickBooks.
Due to IRS regulations, QuickBooks only supports individuals with a Social Security Number (SSN). If the employee has an Individual Taxpayer Identification Number (ITIN) instead of an SSN, adding them to the payroll isn't possible. You can visit this article for more information: Set up your employee who is not a U.S. citizen.
Here's how to set up your employee as a vendor:
- Hover over the Expenses menu. Click the Vendor tab.
- Press the New Vendor button.
- Complete all necessary details, then Save.
Additionally, you can consider consulting your accountant for further guidance on other options for handling foreign employees.
If you want to track paychecks issued outside of QuickBooks, you can record them using a journal entry: Manually enter payroll paychecks.
To view a detailed summary of your company's payroll expenses, including employee salaries, bonuses, taxes, and other related costs, you can run a payroll report in the future.
By executing this workaround, you can efficiently manage and pay your employees on time. It's also essential to ensure you are compliant with relevant laws, regulations, and taxes. If needed, feel free to seek advice from a tax professional or accountant.