I use gusto for payroll and one of my workers needed cash immediately so I ran an off cycle payroll and printed a check. He doesn’t have a bank account so I always printed him checks. I see that he is paying $4-5 for cashing the checks, which is also the money he could use for other things.
I read on fincen.gov that I can cash my employees payroll checks, and that’s what I did. It was a check for $400. I printed it, signed in the front, he signed the back, and I handed him $400.
Now I’m about to deposit this check to the bank, but I don’t know how to properly enter the series of transactions.
I do have a “Reimbursement TakaTuka” account. So every time I make a purchase with my credit card, I enter the purchase, and say it was made with that credit account, and then when I withdraw that amount from the company books, I say “Transfer to Reimburse TT” account.
In my head it’ll be something like this
- Payroll expense from “Reim TT” credit account to employee A (Categorize as payroll expense)
- Withdraw check amount from main account (match this withdrawal with the deposit)
- Deposit check amount to main account (match this deposit with withdrawal)
- Transfer the money from Main account to “Reim TT” credit account. (Categorize as transfer)
Is this correct?
If I can figure out how to do this, I’ll start doing it every paycheck. All those $5s per paycheck add up, and I’d like to do the best for them.
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Author Of this post: /u/takatuka