2.) Add total expenses, a reimbursement and the actual transfer under transactions. These are the steps as per Wave Help Centre: 1.) Add the receipts under Purchase. I know this answer may not directly address your question but that's because there are a number of factors involved and it isn't straightforward. I have an issue recording expenses from personal account. Depending on how you are planning to track PPP expenses will determine how you record in QB the expenses that are ineligible for forgiveness. You can run a Payroll Summary report to find out the total of the employer FICA and FUTA expenses. However since the employer FICA and FUTA are not eligible for forgiveness you will need to back out those expenses from your Payroll Calculations (if you are manually tracking expenses). State Unemployment).īy default QB assigns company-paid payroll taxes to the Profit and Loss Statement (often under the "Payroll Taxes" or "Payroll Expenses" category).
The expenses you are interested in for payroll loan forgiveness are the Gross wages as well as the any state or local taxes that the company pays (i.e. If you need assistance with this process, visit with one of our QuickBooks Experts at (888) 388-1040.If you are using the QuickBooks Payroll service then you won't have to worry about the employee withholdings because QB keeps those taxes as a liability on the Balance Sheet until they are paid. If you would like the expenses detailed, repeat those five steps to create sub-accounts under PPP Loan Forgiveness (Payroll Costs including Vacation and Sick Time, Rent, Utilities, Mortgage Interest)Ĭreate a journal entry to debit the PPP Loan account for the amount forgiven, and credit the new PPP Loan Forgiveness account or sub-account for the amount of expenses to total the forgiven amount.Enter a name for the account, like “PPP Loan Forgiveness”.In the Detail Type, choose Other Miscellaneous Income.In the Account Type, choose Other Income.
6) Create a new account to record the use of the PPP loan funds. The PPP Loan Funds sub-account will show how much of the funds remain.Īfter your lender determines how much of the loan is forgiven, you can transfer the forgiven amount. These amounts can be obtained from a Payroll Summary by Employee report. The transfer amount used for payroll will be for the allowable expenses only (gross wages, employer retirement plan contribution, employer health insurance premiums paid). Note in the memo what the transfer is for. Enter the amount received in the amount columnĤ) Pay your expenses from the bank account as you normally would.Īfter paying an eligible expense using PPP loan funds, enter a journal entry to transfer the amount from the PPP Loan Funds sub-account to the regular bank account.In the account column, choose the loan account created.Change the Account to the new bank sub-account.Enter a name for the account, like “PPP Loan”.In the Detail Type, choose Notes Payable.In the Account Type, then choose Long Term Liabilities.Click Is Sub-account and choose the bank account from the drop downĢ) Create a new loan account in the Chart of Accounts.Enter a name for the account, like “PPP Loan Funds”.1) Create a sub-account to the bank account in the Chart of Accounts. To keep your financial reports consistent and comparable with the prior year, and since using classes may not be an available option for all QuickBooks users, we will present the following way of recording.
#RECORDING PERSONAL EXPENSES IN QUICKBOOKS HOW TO#
There are a few options in QuickBooks Online for how to record the funds received from the Paycheck Protection Program (PPP) loan and the expenses to which the funds are used. Recording a PPP Loan and Tracking Corresponding Expenses
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