Entry required for loan receivable write off.

We’ll need to create a bonus check, Angeatwork.

Bonus checks are subject to normal tax deductions, including state and federal taxes. We can either create it on a separate paycheck or a regular one.

We’ll need to create a payroll item first to offset the employee’s loan balance. Let me show you how:

1. Go to the Lists menu and click Payroll Item List.
2. Click the drop-down beside Payroll Item and select New.
3. Select Custom Setup and then Next.
4. Click Deduction and Next again.
5. Follow the on-screen instructions.
6. Let’s make sure to choose the loan account under the Liability account (employee-paid).
7. Select to calculate it on the employee's net pay.
8. Click Finish.

Create a bonus paycheck depending on how you'll want to record it. Select these options on the Paycheck window: 

• Earnings: Bonus
• Other Payroll Items: deduction payroll item

Please reach out to me if you need more help handling your employee's pay. 

I don't want to create a bonus paycheck.  Isn't there just some entry I can make to reverse the loan I made?