how do I record a loan to an employee

Options
Joanna Osborne_7190794
Joanna Osborne_7190794 Member Posts: 18
edited January 2020 in Reckon Accounts (Desktop)
My boss has loaned money to an employee and the employee has repaid loan.  How do I record it?

Comments

  • Charley
    Charley Member Posts: 548 ✭✭✭
    edited January 2020
    Options
    Call it Wage Advance>set up "Wage Advance' as Other current Asset account.> Create payroll item "Wage Advance" and point it to the Asset account> enter through payroll (this way it comes on the payslip) separately>create payroll item "Advance repayment" as deduction and then assuming it's gone through payroll then deductions from payroll.
  • Joanna Osborne_7190794
    Joanna Osborne_7190794 Member Posts: 18
    edited April 2015
    Options
    Won't that record tax and super?
  • Charley
    Charley Member Posts: 548 ✭✭✭
    edited January 2020
    Options

    No, you just have to untick the boxes. PAYG & Super work on the gross wages not on deductions

    If unsure what to do call me on 0266834083

  • Joanna Osborne_7190794
    Joanna Osborne_7190794 Member Posts: 18
    edited April 2015
    Options
    Hi - I have had a go at it and I don't like it as it is not relating to wages and when you apply the repayment it doesn't seem right to me. Just an instinct thing.

    I think I will just set up a supplier account as its easier to repay it.
  • Charley
    Charley Member Posts: 548 ✭✭✭
    edited January 2020
    Options
    I'd be careful. If you set him up as a supplier/customer then you may be creating a false income for your employer which will come on the BAS which will then become taxable income for him at EOFY
  • Sally McIntosh, Accredited Consultant
    Sally McIntosh, Accredited Consultant Accredited Partner Posts: 468 Accredited Partner Accredited Partner
    edited February 2017
    Options

    Hi Joanna,

    This is how I would do it.

    The initial transfer is paid to an other current asset account called Employee loan (you can write a cheque to that employee using that account with no tax code, so it appears in their employee transaction history).

    Then set up a deduction payroll item pointing to that asset account for you to enter whilst doing the payroll. Within the deduction payroll item as Charles mentioned, ensure you untick the taxes so it does not affect it and doesn't appear on payment summary, etc.

    As the payroll item is created in the current version it should not adjust your super at all. If it does (for whatever reason) just manually adjust the amount back to what it should be.

    I hope this helps.

    Feel free to email me directly if need be.

    Kind regards,

    Sally McIntosh (sally@samsolutions.com.au)

  • Wayne Jarvis
    Wayne Jarvis Member Posts: 2
    Options

    Setting up A deduction you can only "Point" to a Liability account in Reckon one (Web) as you are deducting from a pay,