Hello
An employee of our has had a car accident in one of our vehicles, and is liable to pay the excess fee.
We have paid an excess fee to our insurer and the employee has asked if he could pay it back by us deducting $100 from his pay each week.
How do we set this up as a deduction and what linked payable account do we use?
It is not a purchase/sale, it is more of a loan I guess.
Thank you.
Hi
In the payroll catergories set up the deduction for the repayment and in the linked account allocate it to the same code as the one you used to record the excess you paid ( this will offset that payment you made).
As excess is GST FREE make sure that the deduction records as FRE
Hope that helps
Lisa
Thanks so much for responding to my question. I have just spoken with our accountant and it is a little more difficult than that.
We need to set up a liability account for it first before I can set up the decuction, and then link the Liability account to it. Wish me luck.
Thanks.
