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April 20, 2020
Question

How do I enter payroll payments for employees who are on furlough leave?

  • April 20, 2020
  • 1 reply
  • 0 views

Not sure how to process weekly payroll when employees are on furlough.  Do I enter the figures I will be claiming from HMRC?  And under which payroll item.  This is holding me up from processing year end as some of these payments begin from 30 March.

1 reply

April 21, 2020

Hello Caroline69,

 

Before you pay your employees, you'll need to prepare a few things to ensure that they get paid and track the tax liabilities.

  1. Determine your employee’s benefit and hourly rate

  2. Set up your expense accounts for the paid leave

  3. Set up payroll items

  4. Set up a new tax item

This process is for the QuickBooks Desktop US region users. Though that's the case, the process are likely similar. You can use this link for reference: How to track paid leave and sick time for the coronavirus.

 

It is also best to reach out to your accountant about the process. This is to ensure that you're recording everything correctly.

They know what's best for you and your books.

 

Please let me know if you need anything else.

April 21, 2020

Thanks James.

 

Could you be more specific ie about setting up the payroll item?  It's classified as an earning?  Paid leave?  It's Quickbooks Desktop UK.

April 21, 2020

Hi Caroline69

 

In the UK desktop version if you can create a new payroll item up as wages, mirror the earnings item that is already set up and call it Furlough.