Loan to employee
Company wrote a check for $5000 to loan money to employee - how do I record in QB? Assuming that employee will be set up as vendor and pay back outside of payroll.
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bGYFSCmQyr3QVhacfA8pyY
04/26/09 2:11pm PDT
Viewed by asker 04/28/09 6:45pm PDT
Viewed by asker 04/28/09 6:45pm PDT
3 Replies
01/12/12 4:31pm PST
What if the employee pays back as a deduction from his payroll check. How do I record the payment to the employee loan.
savagejim
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Questions answered: 101
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04/26/09 7:46pm PDT
Assuming you aren't going to have it paid back through payroll deduction, you would need to create an account in the chart of account called Employee Loans (under current assets). If there is already a Emplyee Loands account, you can create a sub account for that particular employee. The check written to the employee would create a $5000 debit to this account. When you deposit payments in the bank, code them to this account and it will reduce it accordingly.
Hope that helps, please mark this as solved or helpful!
