How do I record employee loan forgiveness

Hi, @9130349659890896!

In QuickBooks Online, we'll have to set up a liability account where we can record the loan.  This account tracks what you owe.

These are the steps that will walk you through the process:

1. Select Settings ⚙, and then Chart of Accounts.
2. From the upper left, select New.
3. Set the Account Type to either Other Current Assets or Current Assets.
   Note:
   • Create an Other Current Asset if the loan is to be repaid within the current fiscal year.
   • Create an Other Asset if the loan will be repaid after the current fiscal year.
4. Choose Loans to Others in the Detail Type drop-down.
5. Add a recognizable name like "Customer Loan-Lastname".
6. Select Save and close without entering an opening balance.

You can also read these articles for more details: How do I prepare for Paycheck Protection Program loan forgiveness?

I'm always here to lend a helping hand if you have any other questions. Wishing you continued business success now and in the future.