what is correct way to record a loan to an employee from his salary.

muaazmuaaz Member Posts: 6

the employee will pay it back in few months , FYI

Comments

  • Abbas AliAbbas Ali Administrator Posts: 11 admin

    Hi Muaaz,

    You can use WAVEto give an employee an advance on upcoming pay, which can then be reimbursed to the company through payroll deductions.

    You can use Benefits and Deduction under Employee and click the Add Pay. Once the advance amount is added in Payroll, you can revise the journal transaction created, and record the employee advance as a receivable asset.

    Hope this helps, and if any further questions please do not hesitate to contact us.

    Thanks

    Abbas Ali.

  • KenjKenj Member Posts: 27

    Yes, please open up payroll to other countries via 3d party apps integration. win-win.

  • CultureGapCultureGap Member Posts: 15

    How do we account for employee pay advance if we're not using Payroll in Wave?

  • AlexLAlexL Administrator Posts: 1,906 admin

    Hey @CultureGap . I don't want to advise you on the wrong way of handling this, so I'd highly recommend reaching out to your accountant who should be able to give you the best bookkeeping practice for an employee advance.

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