How do I process covid19 uif payouts paid into the company bank account and then paid to the employees. it is not income or expense but will be on the bank statement?
I'm here to guide you with handling COVID-19 UIF payouts paid into your company bank account so you can pay your employees, @user11623.
Yes, this isn't income or expense but will be on your bank statement. There are two options to achieve your goal.
If you're not using a third-party payroll provider integrated with QBO, let's create a bank deposit. This way, you can record the COVID-19 UIF payouts paid into your company bank account. I'll guide you how.
Go to the + New button from the left menu.
Select Bank deposit under Other.
Choose your company bank account from the Account drop-down.
Go to the Add funds to this deposit section.
Select the appropriate account, enter the necessary information, and the amount.
Click Save andclose.
The screenshot below shows you the last four steps. For the detailed instructions, check out this article: Record Bank Deposits.
Once done, let's manually record the payroll transaction through a journal entry. You'll have to create a payroll liability account, such as COVID-19 UIF payouts, to track these employee payments. With this, I'd suggest consulting your accountant to determine the appropriate account types. They can also help you assist when recording the entry to ensure your books are accurate.
If you're using a third-party payroll provider integrated with QBO, I recommend contacting their support team. From there, you can confirm with them if they can create an account for COVID-19 UIF payouts. Then, link it with your payroll transaction. That way, you can zero out the liability account's balance when processing payroll for your employees.
As always, you can visit this website: How SMEs Can Access Relief Packages. This link provides you more details on how to take advantage of these relief measures during this pandemic. It helps ensure you'll have a stable future for your business and your employees.
Keep me posted whenever you need help. Keep safe and stay healthy, @user11623.