Best way to add accounts for loans and how to manage paybacks and balances.

Yes, it's possible to track employee loans and payments in QuickBooks Online (QBO) Payroll, @pearls. To find out which account to place your employees' loans in, I suggest contacting an accountant to ensure its accuracy. Then, you can record your employees' payments by adding a loan repayment item that will be displayed on their paychecks. Let me share the full information below.

By going to the Add deduction/contribution section from your employee profile, you can add the loan repayment item to show them in their paycheck every payout. Here's how:

1. Go to Payroll and select Employees.
2. Find the employee you'll add a loan repayment item and click it.
3. Scroll-down and click the Edit icon of Deductions and contributions from the Profile section.
   
4. Click the + Add deduction/contribution.
5. In the Deduction/contribution field, select Add deduction/contribution. Then, Other deductions for Deduction/contribution type. Next, Loan Repayment from the Type. Once done, enter the Description (appears on the paycheck).
6. Enter details in the Calculated as, Amount per paycheck, and Annual maximum fields.
7. After that, click on Save.

Check out this article for more information: Set up, change, or delete employee-paid payroll deductions.

Also, you can read this article if you need to give your employees an advance loan: Set up and repay employee advances.

Additionally, you can run the Deductions and contribution report to see if the loan item was successfully added. Check out this article to learn more: Run payroll reports.

Let me know if you have additional questions about tracking your employee loans and payments in QBO by dropping a comment below. We'll be willing to help you. Keep safe, and have a good one.