USA PTO hours used to pay a loan to the company

[roxanna9]

Hi all,

an employee who received from his company a loan wants to pay back this loan with his available PTO hours (personal hours or day). How can I post this payment? thank you,

 

[Steve-LevelUp]

You can Debit PTO liability and Credit Employee Loan receivable.

 

[kirby]

First be sure this is within your company's policy.
If that is within Company policy, I would simply pay the PTO hours through payroll so the payment is taxed appropriately. Then the employee can write you a check. Otherwise, you now have to spend time adjusting the employee's PTO records and documenting the change. This is not your problem so don't make it your problem.

 

[roxanna9]

First be sure this is within your company's policy.
If that is within Company policy, I would simply pay the PTO hours through payroll so the payment is taxed appropriately. Then the employee can write you a check. Otherwise, you now have to spend time adjusting the employee's PTO records and documenting the change. This is not your problem so don't make it your problem.

Thank you for your answer! this transaction happened last year and I found out that the prior bookkeeper did not post this transaction. Now, I will verify if payroll taxes was paid. Thank you again

 

[roxanna9]

You can Debit PTO liability and Credit Employee Loan receivable.

Thank you for your answer! if this transaction already happened can I debit Wage Expense and credit Employee Loan Receivable?