An employee used the company card for a personal expense. we agreed the easiest way to handle it is to make a deduction from payroll. What is the best way to do that?

Happy to have you here on the Community page, @sundebuilders.

You can create a non-taxable deduction item as a reimbursement of your employee's expenses.

Here's how:

1. Click on Workers at the left pane, then select Employees.
2. Look for the employee's name under the list.
3. On the employee's profile, click on the pencil icon beside the Pay button.
4. Scroll down to the Add a new deduction section.
5. Set up your the deduction and be sure to select the correct account same with your employee's personal expenses.
6. Tap OK to save it.

You may also read these articles for additional reference about deductions in QuickBooks Online:

• Change or delete a payroll deduction item
• Deductions and contributions

Our doors are always open here on the Community. Just add a comment below if you have any other questions. Wishing you a good one!

How do I record this if it was a contractor that used a company card for personal use? He's listed as a contractor, not an employee. What do I do?

Hi IrrigationPro!

Thanks for joining this post. Let me show you how to add a deduction from a contractor's pay.

We can simply add a new line item and enter the deduction from there. You can follow these steps:

1. Create a contractor's check as you normally do.
2. From either the Category details section or Item details, enter the amount in a negative (e.g., -100).
3. Tap Save and close.

Once done, you can now print the check.

You'll want to check this link: Create and file 1099s using QuickBooks Online. This will show you the detailed steps on how to prepare your 1099 in QuickBooks Online.

Leave a comment again here if you have additional concerns. Take care!

And if I am using Quickbook Desktop, which are the steps, please?