But then again, check with your state if deductions other than mandated are even allowed.
39 code “reimbursement” and make the deduction amount positive (reimbursement from employees) instead of negative (reimbursements to employees). Erring on the safe side, I would rather have the employee authorize the deduction formally rather than just a simple note on the receipt. Your payroll representative or the ADP website should be able to provide you with a withholding authorization form to authorize any deduction from their pay. Jo had this to say: Our company also works with ADP.Now you the bookkeeper has to keep track of the employee’s personal expenses as well? Do the employees sign some kind of debit card responsibility contract?
Lindquist of AccountAbilities, LLC had this to say: These answers are all well and good, but personally as as a business owner, I would be pretty ticked off if my employees took personal privileges with my debit/credit card. There will be times when the tools purchased will exceed their net pay so you’ll need to give ADP guidelines as to how much to deduct for their advance. Report the advance with the hours so that ADP can then deduct it from the net pay. Laura Lincoln from Sound Bookkeeping Services asked “If these tools are for the job then I would question why the employees are having to pay for them in the first place” and then offered this advice: Have ADP setup an Advance code for anyone that does this.Dee Bradshaw from Accurate Bookkeeping Services said that the repayment by the employee should be a deduction from Net Wages.But don’t advances require the taxes to be taken out? Should I get check breakdown and subtract from net wages instead or treat as a loan?įirst of all, I’d like to say that there were some great responses to this initial question: How do I record this? What they did before was to subtract the amount from the gross wages when called into ADP, so it’s kind of a pay advance. There are oftentimes material expenses for the company on the same receipt. Sometimes the workers purchase tools on the company American Express card and write TOC for “Take Out of Check” on the receipt. I am bookkeeper for a construction company.
This question came up on a discussion list that I belong to over the weekend and I thought “hey, what a great blog post and how to tip this would make”! So here goes!