How do I record a small loan and payments to us given to an employee that will not be coming out of his paycheck?

Let me help you record the loan and repayment given to your employee in QuickBooks Online (QBO). 

In QuickBooks Online, we can set up a liability account to record the loan and its payments. This account tracks what you owe. First, we need to create and set up a liability account so you can record the loan. Here’s how: 

1. Go to the Gear icon on the top menu.
2. Select Chart of Accounts.
3. Click New to create a new account.
4. From the Account Type dropdown, select Long-Term Liabilities. If you plan to pay off the loan by the end of the current fiscal year, choose Other Current Liabilities instead.
5. From the Detail Type dropdown, select Notes Payable.
6. Give the account a relevant name.
7. Choose when you want to start tracking your finances. In the Balance field, enter the amount in the account, and determine the as-of-date. Enter today's date if you want to start tracking immediately.
8. Press Save and Close.

Then, follow Steps 2 and 3 to finish the process in this article: Set up a loan in QuickBooks Online. Since you don't want to deduct the loan repayment from your employee's paycheck, you can create a deposit for it.

I'll add some articles for additional details about handling accounts in the Chart of Accounts:

• Learn how to delete bank, income, and other types of accounts from your chart of accounts.
• Move your chart of accounts to QuickBooks Online.

Keep me posted if you have other questions about recording loan payments. I'll be happy to help you again. Stay safe!