Hello, FrankieC. You've come to the right place. The Community is here to help.
Funds can be transferred between all balance sheet accounts, such as assets, liabilities, and owner's equity. Money transferred from an operating account to a payroll account can be easily recognized and tracked in your bank register where you'll be able to see all of the transfers you've made between different accounts.
To record payroll liabilities, you can use either an expense or liability account when creating the journal entry. If an expense account is used, there's no need to write checks. However, if you use a liability account, you'll need to write checks. You can use this resource for steps on how to record the payroll liability for the PPP loan you received: Record payroll transactions manually
Additionally, here's a helpful feature on our website where you can calculate the Paycheck Protection Program loan forgiveness: Intuit Aid Assist
I'll be here to help if you have any questions so please don't hesitate to reach out anytime. Have a wonderful day!
