This response was received a week ago on another post. Any update on when we can expect when this will be done?
"As we speak, our engineers are working on a quick and simple solution to integrating the PPP into all of our QuickBooks products, including Desktop."
Every response was pushing the fact you could apply for a PPP Loan through QB which is nice but the majority of your customers are receiving their funds from their own banks and are looking for a proper way to track these PPP Loans properly It would be very helpful if Intuit could keep us informed of when and how they plan to integrate this solution, especially since some of us have already received our funds. Thanks!
Yes, we received our money yesterday. I have been reading we should open a separate PPP bank account to draw funds out . We have 7 employees. Payroll completed by a payroll service. Not sure if I really need to get a separate account. Would love some QB info on how to set this up in QB. Please let us know when you guys have the PPP stuff integrated. Will be needing it soon!!
Similar situation. I am not opening a new bank account as that would just mean I would have to order new checks. The way I handled it was to create a sub account in my existing bank account. This way I can reconcile things all at once while still keeping track of the PPP money separately.
I understand that with everything going on you're looking for us to help. We're constantly looking and creating new ways to help our users such as yourself. We have an article on setting up loans in QBO, that will help. If you have any questions or need any more information let me know.
This is not actually a "loan" per se, as it can be forgivable as long as 75% of the payroll is used for the loan, so is there a way to set this up so at the end of the 8 weeks when I apply for the forgiveness, the report will show what exactly was used from the PPP loan? i.e. payroll, lease, utilities.
Thanks for stopping by the QuickBooks Community, the best way to set up the PPP is as a short term liability if you know for sure you'll be forgiven on it.
You can name it whatever you'd like, this way you'll know exactly what it is. If you aren't sure how to set up a liability, follow the steps below once you've signed into your account:
You mentioned a way to set it up to show exactly what it was used for, once you've set up the liability, you'll need to create a Journal Entry to apply the loan to the proper asset accounts, this is how you'll what it's used for.
Once these steps are complete, you should be all set up to record the PPP correctly. Keep an eye on the following link as well, it highlights the Paycheck Prtection Program and everything you need to know.
If there's anything else, feel free to post your questions and concerns below.
Hope you have a nice Monday.
We have 3 employees. We did apply for the PPP via the QB online application. Waiting to see if we receive the funds. If and when we do, since all of the loan will be applied to payroll, do we need to create a new account to monitor the funds? Thanks so much. The application process was a breeze!!!
Hi there, Benny Olsen.
I'm glad to hear that your application process was a breeze! We love to hear when things go smoothly for our customers. As far as creating a new account to monitor the funds, I suggest setting up class tracking for the loan, then create an Liability in which you can track in the bank register. If you aren't familiar with that process, don't worry. I'm attaching a video tutorial down below for you:
Once you've finished that set up, you're good to go.
If you have any other questions, feel free to bring them to us, here in the Community.
Thank you and have a nice Monday evening.
I just translated the procedures to QB Pro desktop.
Looks like this:
In your chart of accounts click:
Account->New->Other Account Types->Other Current Liabilities->continue
Account Name - "PPP Loan" ->Save and Close (Don't enter opening balance)
Go to "Company" tab, select "Make General Journal Entries"
Line 1 Account: select your new "PPP Loan" account -> enter amount of the loan in Credit column
Line 2 Account: select a checking account (I created a Temp Holding sub-account under my main checking account for this, but you can just use the main account where the funds went)->Debit the amount that was dispersed into it from the loan proceeds
We will only be using the loan for payroll expenses…actual payroll and payroll taxes. Those are already set up as classes in QuickBooks Payroll online. We should just be able to run the report at the end of the loan period???? I’m assuming, anyway….
Thank you for reaching out to the Quickbooks Community,Benny Olsen. Although there are numerous ways of tracking your PPP loans, this is what I recommend doing.
Once following those steps, your set up will be correct. Also, this tutorial details how to track the PPP loan in Quickbooks. If you have any other questions, please do not hesitate to comment below. I hope you enjoy the rest of your day.
Currently, our Paycheck Protection Program application is not set up to support businesses with multiple owners. However, you can still apply for the loan outside of Intuit. You'll need to find a 7(a) lender approved by the Small Business Association. You can make use of our new Aid Assist tool or the Find Eligible Lenders feature on the SBA's website to find a local lender who is the right fit for you.
I would also like to point out a great article to keep an eye on as well: What you need to know about the Paycheck Protection Program
If you have any other questions or concerns, please just leave a reply.
I have established the new account as stated within our list of accounts. I utilized it to account for the income into the new account. This is our first week processing payroll through the new bank account (which is setup in QuickBooks). How do I map the payroll values to utilize the new account for the PPP loan?
Thanks in advance.
Hi Jacks Tropical. Thanks for reaching out to the community. To make it as easy as possible for you to map your account, I'm going to provide the instructions below as well as some screenshots to guide you along:
3. Select the Pencil icon in the Accounting section
4. Here you will see all the accounts currently mapped for your payroll service. Click the Pencil Icons to make changes in each section.
5. When you are finished making changes, simply press Done in the bottom right corner
And that's all there is to it, but if you need anything else don't hesitate to leave a reply.
This doesn't help me as I have QB Enhanced PR for desktop. Also, how am I supposed to record the deferred employer SS? There was an update to the payroll program and it states, "This tax table includes a new federal payroll item to help employers defer their employer social security tax, as defined..."; however when you click on the link to see the list and the required actions, there's only a link that takes you to what the relief act is, nothing showing as to how to set up the new federal payroll item. Help!
One more question: We received our PPP deposit April 9th. We had a payroll End on April 10th and payroll taxes due the next week on said payroll. Given the payroll was for the period 3/28/2020 to 4/10/2020 does this get recorded against the PPP money?
Hey there, lwarner9489. You can count on the Community to be here to help with any questions.
To track payroll for employees affected by COVID-19, you'll need to determine each employee's benefits and hourly rates. Under the FFCRA, there's a few different benefit types:
In most instances, you'll pay your employees at the same hourly rate you've paid them over the last six months. However, there are a few exceptions that correspond with the regular rate of pay under the Fair Labor Standards Act (FLSA). You can find further steps on both how to track and set up the payroll here: How to track paid leave and sick time for the Coronavirus
Additionally, this article goes over how to enter a record for your deferred employer Social Security taxes: How to Record & Account for Deferred Expenses
I'll also leave you with this detailed resource about how the CARES Act affects payroll: How the Coronavirus Aid, Relief, and Economic Security Act affects your payroll
Feel welcome to reach out to me here if you have any other questions. Have yourself a great day!
The article you gave "Recording Deferred Expenses" does nothing for what I am asking. The last update (22010) to QB payroll stated, "This tax table includes a new federal payroll item to help employers defer their employer social security tax, as defined in the Coronavirus Aud, Relief, and Economic Security Act (CARES Act)."
Right under that, it says, "Click here to see a cumulative list of all tax table updates for 2020 and required actions."
So, if I click on that, at the very bottom, the headline says, "Coronavirus, Aid, Relief, and Economic Security Act (CARES Act)." The next to last line says, "A new employer payroll item, CARES Co. Soc. Sec. Deferral has been added to support the deferral of the employer portion of the social security tax."
Where is that payroll item? It's not there! That is what I am looking for. Not how to make general journal entries for a company that doesn't work on an accrual basis. No one seems to be able to answer the question as to why this isn't available.
A separate bank account is a matter of preference and there is no rule stating that one is required. However, some Attorneys and CPA’s are suggesting that the use of one is a good idea. Why? With a real bank account, you have transactions that have a audit trail.
The new checking accounting is being used in one of two ways.
1) All PPP approved transactions are being PAID using only this account. The first entry should be a credit - dated the same date the PPP funds are put in the account (match the bank statement). The remaining transactions will be debits.
2) All PPP approved transactions are being TRACKED but not paid through this account. It is more or less used like you would a loan account. The first entry should be a credit - dated the same date the PPP funds are put in the account (match the bank statement). The remaining transactions should be transfers to the operating account to pay the company back or to advance the company for PPP approved expenses.
If you do not want to open a checking account, create a new liability account - set up as “other current liability” or “long term liability” and name it PPP Loan and use JE’s to track the money spent on PPP approved items.
Create classes and track this way - this is the only method I have not used myself so I cannot speak on it.
Note - Even though the new checking account is a bank account it is set up in QB as “other current liability” or “long term liability”. Why? Because it is a loan until you have been approved for forgiveness of the loan.
Note - It is suggested to set up these accounts as “long term liability”. In the event that the loan is not forgiven you already have the account setup and the terms are 2 1/2 years to pay it back (2 years with 6 months deferred)
Talk to your CPA about which method is right fi
for you and stay current on the updates. Whatever method you choose, I would suggest having a PPP folder in your computer. This will be your audit/loan forgiveness folder. Have a paper trail for every expense/ transaction (invoice, receipt, cancelled check) paid. A bank statement alone will not be enough. I have a sub folder named “payroll” and another one for “other approved exp”. I also am recording transactions in an excel workbook with multiple worksheets. Document, Document and Don’t Forget To Document! Ha! Seriously though - you want to have all your backup ready at the end of your 8 weeks for the forgiveness application.
When running payroll through QBO, how would we go about putting that in a class? I turned my class tracking on, and matched my loan to the "other current liability" I made for the PPP. But when I run payroll on Monday, how do I specify the class?
Hello there, @AutoDiesel.
You have the option to assign a class for each employee in QuickBooks Online.
For more information about class tracking in QuickBooks Online, you may check this article: How to set up and use class and location tracking.
Don't hesitate to click the Reply button if you have other questions. I'm always here to help.
As others have said for a small business with half a dozen or less employees, we would like a simple method to track the PPP loan in QB Desktop. Because we are so small we have never used classes, and starting now for this loan may be overkill and a lot of learning. Does anyone have a suggestion?
The bank gave us a spreadsheet to track the expenditures that meet the rules. I think an easier way is to generate a report that includes salary, utilities, and mortgage interest. (For those that have rent, they would include rent in the report.)
So the guidance I think we are looking for is how to put it into QB desktop as a liability, and then how do we put in the credit when it is fully or partially forgiven.