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County reimbursing the company for partial payroll...HELP

Hello! After searching for a payroll message board/ chat, I found this site and I'm so glad I did!

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 have not read your contract with whoever wrote you the check. Unless they consider themselves to be your co-employer and are somehow reporting the payment to the government, then you want to reduce payroll expense. Putting in payroll liability make no sense unless you know how it is later going to be removed.

  • So to reduce payroll expense I would do what...?

    Thanks. I've been thrown into this with no guidance so I appreciate the help. I'm learning a lot just from reading old posts here.

  • You would put a debit (?) or negative amount/ credit as positive amount into the payroll expense account -- i could be wrong (backwards) but easily correctable either way!, since you want to lower your expenses it would go to decrease the companies total payroll expenses since that part was reimbursed. But if you aren't accounting/controller/finance, you might check with them to make sure how they want it credited. ( I used QB Enterprise but this is something our Controller would have, well, controlled LOL)

  • If we are talking about a general ledger journal entry, then you are debiting cash (or receivables) and crediting one or more of payroll expense accounts. I do not see how a payment from a third party goes through the payroll sub-ledger at all. Talk to the controller. He/she owns this particular transaction, not payroll. UNLESS you signed an agreement making the third party a co-employer, in which case you might as well just shoot your self.

    rrupert
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