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County reimbursing the company for partial payroll...HELP

I could use some guidance here...

My employer participates in the local welfare-to-work program. We have 1 employee who is enrolled. We pay the employee's full wage, and then later the county reimburses us half of the employees wage for each month. We've just received the first check for January.

I have no idea how to account for this check or how to put this in Quickbooks. I'm using QB Pro 2016 Desktop.

Does it go into Payroll Liabilities?

Help??

Comments

  • I'd check with your tax accountant, but it should lower your payroll expenses overall. I don't really see it as a liability or lowering other liabilities (like taxes) unless you have created a liability while processing payroll until the money is deposited to "clear" the difference. Part of it is how you are going to account for it at tax time.

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