Can you run a payroll (direct deposit), without transferring the funds? We want to hold some of the money back as a shareholder loan.

Hi joseph8,

Thanks for reaching out here.  QuickBooks Online provides the features you need to record and track your Shareholder loan seamlessly.  I'd be happy to guide you through the process!

Your first step would be to set up a liability account for the loan.  Here's how;

1. Go to Settings ⚙ and select Chart of Accounts

2. Click on +New from the left menu

3. In the Account dialog, select either Other Current Liabilities or Long Term Liabilities from the Account Type drop-down list

Note; Depending on the repayment time frame, the Account Type can be Other Current Liabilities (to be paid in full in one year) or Long Term Liabilities (to be repaid over more than one year)

4. From the Detail Type ▼ dropdown menu, select either Other Current Liabilities or Long Term Liabilities

5. Enter a Name for the account
6. Leave the Unpaid Balance field blank

7. Choose Save and close.

To record the loan, you'll create a journal entry by following these steps;

1. Open +New from the left menu and select Journal Entry

2. Enter the amount of the loan and log the proper amounts to the appropriate expense accounts
Note; The Liability/Loan account is increased, or credited, while the appropriate expense accounts are decreased, or debited.  In journal entries, the total of the Debit and Credit columns must be equal.

3. Hit Save and close.

You're ready to record the loan payments as follows;

1. Select +New

2. Under Suppliers, select Cheque

3. From the Account ▼ dropdown list, select the liability account you created for this loan

4. Enter the Amount of the payment

5. Hit Save and close

The loan payment is successfully recorded!

Please don't hesitate to reach back out with additional questions.  We'd love to help!