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JeffDean
December 31, 2020
Question

Gift Card as Bonus

  • December 31, 2020
  • 1 reply
  • 0 views

We gave employees gift cards from their favorite stores as part of a year end bonus.  The gift cards were purchased using a credit card connected to QBO.  When I ran payroll I added a bonus amount for the amount of the gift cards as the net amount to account for taxes and ran it as a Paper Check.  The problem I'm having is that since Paper Check was the only viable option - how can I match the gift card purchase using a credit card as the payroll expense?

Thanks.

1 reply

Kristine Mae
Kristine Mae
December 31, 2020

Let me share a few details, JeffDean.

 

You can match them if you used the credit card account when you created the paper check. However, if you used a different one, you can exclude the downloaded transaction instead. Here's how:

  1. Click Banking, then go to the Banking tab.
  2. Go to the For review tab.
  3. Select the transaction, then click Exclude.

It'll be added to the Excluded tab. If you wish to delete it permanently, here's how:

  1. On the Excluded tab, select the transaction.
  2. Click Delete.

Once done, you can continue categorizing the transactions.

 

Feel free to let us know if you have other banking concerns. We're just around to help you. Take care!

J
JeffDeanAuthor
December 31, 2020

I'm not clear on what you mean by "if you used the credit card account when you created the paper check"  - when I ran the payroll I have two options 1) direct deposit or 2) paper check.  Since I gave employees a gift card I don't want to direct deposit and double their bonus so I chose paper check.  When I go to the banking section for the credit card I used to buy the gift cards and I choose Match nothing shows up.

 

Since buying the gift card was an expense and payroll is an expense it would seem like I need to make an entry to tie the purchase of the gift card to the payroll item and account for the "paper check" that the payroll system thinks I wrote.

AlcaeusF
AlcaeusF
December 31, 2020

Thanks for getting back to us, @JeffDean.

 

Based on the information you've shared, yes, you can create a Journal Entry (JE) to tie the purchase of the gift card to the payroll item and account for the check.

 

Before we proceed, if you're uncertain what accounts to credit and debit when creating a JE, it would be best to consult your accountant for guidance.

 

Here's how:

 

  1. In QuickBooks Online (QBO), go to the + New option at the top left to create a Journal Entry.
  2. Enter the necessary information in the desired fields and columns.
  3. Verify the amount, then hit Save and close at the bottom to complete.

 

For more insights about recording JEs in QBO, I suggest checking out this article for future reference: Create a journal entry in QuickBooks Online.

 

I'm also adding this article that tackles managing payroll in QuickBooks: Get started with Payroll.

 

Reach out to me in the comment section below if you have any other questions or concerns. I'll be here to help. Have a good one!

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