Classes/Education for Employees

Paying for an Employee's Class/Education

Hi,

My boss paid for some our employees to take a necessary certification class. 

What is the proper way to account for this:

How would I go about expensing this?

Thanks in advance.


Answer

Let's break this apart:

"made out to cash."

That is the Banking. They drew Cash, and did not Pay for certification. In QB, then, you set that check, on the expenses tab, to post to your Petty Cash Bank account.

Now you need to enter the Spending, as Write Check, from the Petty Cash Bank account (top left of the Check  screen) to show Real Payee. Who they paid is what you need to be tracking. And this is the entry for what they paid for.

"It was for -15 employees to become certified as flaggers paid for"

Were these people already flaggers or not? Examples:

You paid a Certification Firm directly, for them to maintain a certification that already applies to what they do for you = part of the job duties and requirements already, as business expense.

Or, you paid a Certification Firm directly, for them to gain New certification for a job they did not previously qualify to do = this is reported through payroll as a Taxable Fringe Benefit.

Or, you pay (reimburse) the employee directly and that is a different rule, yet.


You establish a relationship with a CPA, so that you can ask these types of Tax Rule Guidance questions from them, to always stay current with your requirements and for what that means from the perspective of the financial data handling processes.




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