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Level 1

What type of account do i set up for new stimulus check?

 
23 Comments
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Level 1

What type of account do i set up for new stimulus check?

I second this request? We have the deposit. How do I account for it?

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QuickBooks Team

What type of account do i set up for new stimulus check?

Hello tkapler and Keymaster, 

 

Thank you for coming to the QuickBooks community, you came to right place for the right information. 

 

What you'll want to do is credit the stimulus check as a liability, you can name it whatever you want, that way you'll remember exactly what it is. You'll want to set it up as a short-term liability, if you know it'll be forgiven, since the life of the loan is only 8 weeks, If you think that even a small portion may not be forgiven, for any circumstances such as, but not limited too not rehiring enough full-time employees by June 30th, you can set it up as long term liability as it has a 2 year repayment plan.

 

Also, remember to record it in the name of the bank you received it from, you're paying back or being forgiven by your bank, not the SBA. Also keep an eye on this IRS fact sheet. It has everything you need to know about the PPP loan. 

 

- PPP Fact Sheet

 

If you have any other questions or concerns, feel free to post them here. 

 

Have a nice weekend.

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Level 1

What type of account do i set up for new stimulus check?

Hi,

I have a question to add on to this.  We also received our stimulus check, and I set it up as a short term loan.  My boss wants me add a credit against the loan, every time we run a payroll or pay utility bills.  How do I do this?

 

Thank you!

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Level 1

What type of account do i set up for new stimulus check?

This question is in reference to an SBA EIDL advance that was provided by the SBA (basically, a $10,000 advance on an EIDL application that does NOT have to be repaid) - how best do I record a liability that doesn't need to be repaid? Or how does one account for free money? 

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Level 1

What type of account do i set up for new stimulus check?

I just set up an "other income" account & put it in the description, and then deposited the ACH payment. Seems logical - I assume it's not tax-free income, but it's not a liability as it does not need to be repaid. 

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Level 11

What type of account do i set up for new stimulus check?

"What type of account do i set up for new stimulus check?"

 

PPP Loan COA Template.PNG

 

More guidance/clarification is needed on this issue. For now, the stimulus check deposit goes to the PPP Loan short-term account in QBO.

I would create two new accounts:

1) PPP Loan Short Term - Bank Name (e.g. Chase)

2) PPP Loan Long Term - Bank Name (e.g. Chase)

See the screenshot below for reference.

 

#1 could turn into a grant loan (Forgiveness of loan)

#2 remaining balance from #1 should be reclassed to a 2-year loan as a long-term liability

 

Again, more guidance is needed in this area later.

 

 

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QuickBooks Team

What type of account do i set up for new stimulus check?

Hi there, @AngelaP01

 

Thanks for joining this thread. 

 

At this time, changes are coming daily to QuickBooks Payroll products. I appreciate your patience as we work to support you. Once we have the update preparedto record the loan forgiveness the following article will be updated to show this as well: How do I prepare for Paycheck Protection Program loan forgiveness.

 

Please keep an eye out for any updates in your email and the QuickBooks Blog. You're always welcome to follow up on any related thread here in the Community as well. 

 

We understand how difficult this time is for you and your business. Just know, I'm always here to help. Have a wonderful rest of your day!

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Level 3

What type of account do i set up for new stimulus check?

I did the same. (for EIDL) I set it up as "Other Income" Then "Other Miscellaneous Income" in the Detail Type which is defined as "Use Other miscellaneous income to track income that isn’t from normal business operations, and doesn’t fall into another Other Income type." Then in the description I wrote, "The CARES Act EIDL Payment Per Active Employee" 

 

If there are any other future entries I will use this same process. I did not apply for PPP. I can sustain business at this point with a bit of a struggle. My greatest concern is that Uncle Sam will ask for everything back if a yield on penny of profit at the end of my fiscal year. 

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Level 1

What type of account do i set up for new stimulus check?

The new PPP loan on the balance sheet

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Level 3

What type of account do i set up for new stimulus check?

it is a grant from eidl. .  It is not a liability although we may have to pay income tax on it as a forgiven loan.  The IRS has not clarified and we need written clarification. I am temporarily putting it in as other income and can always do a journal entry with clarification from congress/irs

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Level 1

What type of account do i set up for new stimulus check?

Not sure about the EIDL, but the PPP loan, when forgiven, IS NOT considered taxable income... Here is the exact text from The CARES Act:

Section 1106 (i)
For purposes of the Internal Revenue Code
of 1986, any amount which (but for this subsection) would be
includible in gross income of the eligible recipient by reason of
forgiveness described in subsection (b) shall be excluded from gross
income.

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Level 2

What type of account do i set up for new stimulus check?

My question is in regards to the HHS Stimulus checks given to Medicare providers.  It is not a loan but a "relief payment" for which we need to have documentation showing how we spent it.  So I am wondering what account code/name to apply to it so I can code expenses to that account?

 

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Level 1

What type of account do i set up for new stimulus check?

<duplicate>

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Level 1

What type of account do i set up for new stimulus check?

Do you know if the EIDL $10K advance is considered taxable income ? (it's a grant so there's no repayment so it's income, but is it taxable?)

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Level 1

What type of account do i set up for new stimulus check?

I understand why you would set up the EDIL as "other income" but when you run your P&L report, that EDIL grant money is included in income and will be included as taxable income for the company. I have consulted with a H&R Block tax professional and they stateed EDIL money will NOT be taxable, it is "grant" money. 

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Level 1

What type of account do i set up for new stimulus check?

Did you ever receive an answer to this? I have the same question.  Thank you

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Level 1

What type of account do i set up for new stimulus check?

I have this same question.  Did you ever receive an answer from anyone? 

Highlighted
QuickBooks Team

What type of account do i set up for new stimulus check?

Hi there, Chief Hammond.

 

I'll share some information about how the stimulus check works in QuickBooks.

 

As mentioned above, we can set it up this check as a short-term liability since the life of the loan is 8 weeks. If the check has 2 years repayment plan, we can set it up as long term liability. Additionally, please make sure to use the name of your bank upon setting up the liability account. 

 

I encourage visiting our blog and the IRS Paycheck Protection Program Information Sheet from time to time to stay current with the PPP Loan updates. You can also read the article provided by my colleague, Kendra H to be guided in recording the loan forgiveness.

 

Do you have other questions in mind? Feel free to leave them below and I'll make sure to get back to you as quickly as I can.

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Level 1

What type of account do i set up for new stimulus check?

I'm new to this and evidently posted in the wrong spot.  I am interested in how to account for the Health and Human Services (HHS) CARES ACT Provider Relief Fund for healthcare providers.  I can provide a copy of the email received from HHS on April 17, 2020, if that would be helpful to understand the premise and requirements.  I have already entered in my PPP funds.

 

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Level 1

What type of account do i set up for new stimulus check?

I'm new to this so I guess I posted my question in the wrong place.  My question is not about PPP, it is about the Health and Human Services (HHS) CARES ACT Provider Relief Fund for healthcare providers who bill Medicare.  I can provide the email from HHS  if it would help.

Thank you!-Chief Hammond

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QuickBooks Team

What type of account do i set up for new stimulus check?

Hi, Chief Hammond.

 

I found some great information on a the topic your speaking of. You can view these and let me know if they were helpful:

We're always here in the Community to help. Simply reply at any time to reach me.

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Level 1

What type of account do i set up for new stimulus check?

Did you receive a response, I have the same question! Thank you!

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Level 1

What type of account do i set up for new stimulus check?

I appreciate the information provided, but this does not address the question being asked. Health care providers (hospitals, doctor's offices, etc.) were given funds through the CARES Act Provider Relief Fund. It is not like the PPP in that it is not a loan (nor a forgivable loan). HHS allocated the funds to reach those on the front lines and protecting patients' access to health care. What account should this go in? Other income? Is it income? Is it taxable? 

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