PTO hours used to pay a loan to the company

USA Discussion in 'General Accountancy Discussion' started by roxanna9, Sep 20, 2018.

  1. roxanna9

    roxanna9

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    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,
     
    roxanna9, Sep 20, 2018
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  2. roxanna9

    Steve-LevelUp VIP Member

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    You can Debit PTO liability and Credit Employee Loan receivable.
     
    Steve-LevelUp, Sep 21, 2018
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  3. roxanna9

    kirby VIP Member

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    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.
     
    kirby, Sep 21, 2018
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  4. roxanna9

    roxanna9

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    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, Sep 23, 2018
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  5. roxanna9

    roxanna9

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    Thank you for your answer! if this transaction already happened can I debit Wage Expense and credit Employee Loan Receivable?
     
    roxanna9, Sep 23, 2018
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