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Level 2

Operating in Laos, we have traditionally been able to pay employees in USD, but this has recently become difficult. Can I change the payment currency for an employee?

 
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Best answer June 03, 2020

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Moderator

Operating in Laos, we have traditionally been able to pay employees in USD, but this has recently become difficult. Can I change the payment currency for an employee?

Thank you for providing the follow-up details about your concern, @A78nEn. I'm here to confirm your recommendation about the method you're managing in the program. 

 

Yes, Fiat Lux - Asia is right. The QBO Global version doesn't have an inbuilt payroll function. You've mentioned above that you didn't use any payroll service in your US account. With this, it's good to hear you're entering expenses for your employees' payroll. It helps you keep track of their salaries in the program. 

 

As for changing the employee's currency from the US to LAK, this option is unavailable. It's because we want to make sure your transactions are intact and accurate in the software. 

 

Your suggestion of adding your employees as suppliers (LAK) to continue recording their salaries as expenses may not work. Here are some factors this method won't work though you're able to manage it in QBO: 

  • You have a US-based QBO account, but your business operates in Laos. Thus, there may be tax differences in the company's operations with each country's rules and regulations. 
  • Suppliers are people/companies that you owe money to as per their vendor agreements. Employees are people under your team that you'll have to pay them following their employment contracts. Thus, there may be tax implications on the differences of their reporting guidelines to the appropriate agencies. 

 

I'd recommend visiting this website: Multicurrency Overview. It has in-depth information about the effects of using the Multicurrency feature on your company's accounts and balances. It also provides you links to learn more about this functionality in the program. 

 

I'm just a comment away if you need anything else. Keep safe always, @A78nEn.

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3 Comments
Level 15

Operating in Laos, we have traditionally been able to pay employees in USD, but this has recently become difficult. Can I change the payment currency for an employee?

As far as I know, there is no payroll feature in QBO Global version for Laos

https://quickbooks.grsm.io/Asia-Pacific

 

How did you pay the payroll to employees? Journal Entries?

 

Level 2

Operating in Laos, we have traditionally been able to pay employees in USD, but this has recently become difficult. Can I change the payment currency for an employee?

We've just handled this by entering payroll as expenses (within the CoA, the hierarchy is Expenses>HR Expenses>Salaries>Executive Director, for example) with splits as necessary. We have a very small staff.

Because it appears I can't change an Employee's currency to anything other than my default (USD--and I'm not on QBO Global, as we started this with a multi-currency US account several years ago), and since I'm not actually using any kind of payroll process that would depend on this, it looks like I can add my employees as suppliers (LAK) and continue recording their salaries as expenses in the usual place. Any reason that doesn't work, even though it's not exactly elegant?

Moderator

Operating in Laos, we have traditionally been able to pay employees in USD, but this has recently become difficult. Can I change the payment currency for an employee?

Thank you for providing the follow-up details about your concern, @A78nEn. I'm here to confirm your recommendation about the method you're managing in the program. 

 

Yes, Fiat Lux - Asia is right. The QBO Global version doesn't have an inbuilt payroll function. You've mentioned above that you didn't use any payroll service in your US account. With this, it's good to hear you're entering expenses for your employees' payroll. It helps you keep track of their salaries in the program. 

 

As for changing the employee's currency from the US to LAK, this option is unavailable. It's because we want to make sure your transactions are intact and accurate in the software. 

 

Your suggestion of adding your employees as suppliers (LAK) to continue recording their salaries as expenses may not work. Here are some factors this method won't work though you're able to manage it in QBO: 

  • You have a US-based QBO account, but your business operates in Laos. Thus, there may be tax differences in the company's operations with each country's rules and regulations. 
  • Suppliers are people/companies that you owe money to as per their vendor agreements. Employees are people under your team that you'll have to pay them following their employment contracts. Thus, there may be tax implications on the differences of their reporting guidelines to the appropriate agencies. 

 

I'd recommend visiting this website: Multicurrency Overview. It has in-depth information about the effects of using the Multicurrency feature on your company's accounts and balances. It also provides you links to learn more about this functionality in the program. 

 

I'm just a comment away if you need anything else. Keep safe always, @A78nEn.

View solution in original post