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dLearned
Level 5

withhold for personal expenses

I have a scenario where an employee used a business credit card accidentally for a personal expense.  The credit charge was paid by the business when the statement was paid.

Is there a way to withhold that charge from a paycheck without affecting taxation?

3 Comments 3
Carneil_C
QuickBooks Team

withhold for personal expenses

Thank you for posting here in the Community, @dLearned. I’ll be glad to assist you in sorting out this issue about an employee who accidentally used a business credit card for a personal expense.

 

With regards to this matter, you can reimburse an employee to repay a business-related expense that was paid out-of-pocket.

First, add the Reimbursement pay type.

 

Here’s how:

  1. In the left navigation bar, click Employees.
  2. Under How much do you pay this employee? click Add additional pay types if you haven't selected any other pay types, or click the pencil icon if you have.
  3. Select the Reimbursement checkbox.
  4. Click Done.

From there, you can create a paychecks using the newly created reimbursement pay type including the amount.

 

Furthermore, I’ll add these articles for further guidance on how to:

 

 
In the topic of paychecks, in the future, if you want to add a bonus to your employees, see this article for the steps: Pay an employee bonus.

 

If you have any further questions or concerns about managing your employees, please know that you can always tag my name. I'm here to help you in any way I can. Enjoy your day!

dLearned
Level 5

withhold for personal expenses

Thanks for the reply, however, you have the scenario reversed.

 

I don't want to reimburse him, I want to withhold from his paycheck (i.e. he owes us).  The business paid an expense that was not legitimate and it is the employee's responsibility to pay it.  I wonder if there is a way to just withhold the amount from his pay, rather than hoping he will give us a check.

ChristieAnn
QuickBooks Team

withhold for personal expenses

Hi there, dLearned.

 

I appreciate you for coming back to the thread and adding additional details about your concern. With this, I'll be providing details on how you can withhold the amount to an employee's paycheck from the credit charge that was paid by the business.

 

There's a deductions item in QuickBooks Online (besides taxes)that you can set up and use to apply toward credit charges expense. This way, the amount will include in their paycheck and subtract automatically when running payroll.

 

Here's how:

 

  1. Click the Payroll menu and choose the Employees section.
  2. Select the employee's name.
  3. Click the Edit ✎ icon next to Pay.
  4. In the deduction section, select + Add a new deduction or + Add deductions.
  5. From the Deductions/contributions dropdown list, choose New deduction/contribution.
  6. Select a Deduction type and Type from the small arrow icon.
  7. Enter Provider name(appears on a paycheck).
  8. From the Amount per pay period icon, select $ amount or % of gross pay and enter the $ amount or percentage. 
  9. Click Save and Done.

 

Then, you can open this article to see further details and to see the difference between taxable or pretax deduction: Add or edit a deduction or contribution.

 

Lastly, you may refer to this article to view several payroll reports that you can use to view useful information about your business and employees: Run payroll reports.

 

Please click the Reply button below if you have any other concerns about deductions. I'm one post away. Have a good one!

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