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BernieElder
February 5, 2025
Question

Employee loan repayment

  • February 5, 2025
  • 1 reply
  • 0 views

We paid a bill for an employee and I am taking a certain amount off his pay cheque every month. As he is repaying it where do I account for the payment? It is not actually money going into the bank. 

Help would be appreciated.

1 reply

A
Amanda-B
February 5, 2025

Hey there, BernieElder.

 

I appreciate you taking the time to join us here in the Community. I'd be happy to help. 

 

QuickBooks Online provides the option to set up and assign employee deductions. You can create a new deduction, label it as a "Loan Repayment" and set the deduction amount to be taken from their paycheck each pay period. I recommend taking a look at this article as it will provide step by step instructions on how to proceed. 

 

If you require further assistance, I encourage you to reach out to an accounting professional. They'll be able to guide you in the right direction. Having an accountant can be beneficial for you and your business. You can add your accountant to your books by following the steps listed here. If you don't have an accountant, you can find one who has experience using QuickBooks near you by clicking here.

 

If you have any other questions, feel free to reach back out.

B
BernieElderAuthor
February 5, 2025

Thank you. I have the employee loan set up on the payroll and it has deducted the correct amount.

Can you tell me where the deduction goes from there? How do I get it to decrease the loan?

Should I make an invoice to the employee? 

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