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arkvalleyinfo
October 16, 2018
Question

How to record bank withdrawal to pay employee in cash?

  • October 16, 2018
  • 1 reply
  • 0 views

Owner of business withdrew $417 from bank account X and paid an employee in cash. How do I record this? Do I record the withdrawal using the petty cash account and then do a journal entry for show a deduction of petty cash and add to wages account?

1 reply

lynda11_2
lynda11_2
October 16, 2018

Don’t you love when owners do things like this?  You should record the paycheck as normal.  Make a not that the employer withdrew cash in lieu of the check.  Clear it like a check.  put cash in the check # place.  

    M
    maxyness
    February 15, 2019

    also, if you create a paycheck it will automatically deduct taxes. To stop this from happening for this one time pay, edit the Employee details  Withholdings and mark as Do Not withhold.

    Be sure to change this back to what it was for the next paycheck.

    K
    Kfasthoff
    March 14, 2019

    Do we do anything differently than the above mentioned if we already deducted taxes from the cash paid to the employee?

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