Skip to main content
October 2, 2020
Question

How do I record a loan made to an employee?

  • October 2, 2020
  • 2 replies
  • 0 views
I loaned an employee money to repair her vehicle. How do I record that loan in Q/B online?

2 replies

Rustler
October 2, 2020

Create an asset account called something like, due from [name] and use that

October 2, 2020

Hello there, girard31.

 

We can set up an Other Current Asset account to record the loan you've made to an employee. Here's how:

 

  1. Go to Accounting on the left panel.
  2. Within the Chart of Accounts tab, click the New button at the upper-right corner.
  3. Choose Other Current Assets in the Account Type and select Employee Cash Advances in the Detail Type.
  4. Then, click Save and Close.

 

Once done, you can create a deduction item for the repayment. If you don't want to deduct the loan repayment to your employee's paycheck, you can create a deposit for it.

 

Also, you can check this article for additional details: Set up a loan in QuickBooks Online. Also, I'll add some articles for additional details about handling accounts in the COA:

 

 

Let me know if you have other questions. Take care and stay safe always!

December 9, 2021

Followed the instructions. Still cannot get paychecks with employee advances to post. 

December 9, 2021

Thanks for joining this thread, RJGoodmanEA.
 

To verify my understanding, were you able to create a deduction item for your repayment? This information will help me better understand which steps need to be taken next to get your employee's paychecks to post.
 

I'll be looking forward to hearing back from you. Have a great day!