Employer gave an employee a loan, how would I book this?
Hello QBO Community,
We are a small business in the auto transportation industry as a broker. One of our sales rep. (full commission) borrowed $400.00 from the employer because he forgot his own personal card for a personal purchase. This transaction happened on 12.28.2019, The sales rep. paid back the employer in full and the $400.00 was then deposited back in the business account on 1.07.20 (there was no interest charged). My question is how would I go about booking this and will we have to deduct taxes in anyway? I was planning to create a new category for employee loans and expense it that way. Then when with the money coming back in the following month I could book it to one of our income accounts "Loan paid back".
Employer gave an employee a loan, how would I book this?
I set up the asset account 'due from employee' the money was taken out of the checking account so there wasn't a check involved. Would this change the way I go about this?
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