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rd_sutton
October 26, 2022
Question

Barter With Employee

  • October 26, 2022
  • 1 reply
  • 0 views

I am unsure how to set up a barter with an employee of my business in QB payroll.  I know it must be recorded in QB for tax purposes and so that it will show up on W-2 but everything I find online talks about customer/vendor bartering - nothing with employees. 

 

Has anyone done this? 

1 reply

A
AileneA
October 26, 2022

Hello, rd_sutton. 

 

I'm here to help you set up a Barter account for your employee. 

 

You can create a Clearing account or Wash account and choose the employee. This clearing or wash account is also to move balances from one account to another. This will help keep your records in tiptop shape.

 

To create a clearing account:

 

  1. Go to Lists at the top menu bar, then select Chart of Accounts.
  2. Click on the Accounts drop-down, then choose New.
  3. In the Add New Account window, mark the radio button for Bank.
  4. In the Account Name field, enter the appropriate account name. For example, clearing, barter or wash accounts.
  5. Fill in the necessary fields.
  6. Note: Do not enter an opening balance.
  7. Choose Save & Close.

 

Once done, you can now use the barter account to input the transactions. For detailed instructions follow the steps in this article and proceed to the To use a clearing account section: Set up a clearing account.

 

To ensure transactions are properly tracked, I suggest contacting your accountant for guidance on which account to use for debits and credits. 

 

If you have any questions or concerns while working in QuickBooks, leave me a comment below. I’ll be around to help and make sure you’re taken care. Have a great day!

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