How to Use QuickBooks to Pay Cash to Your Employees

At times, organizations need to pay cash to their employees, verses issuing a paycheck. Hence, there are reasons a business may need to use this QuickBooks Support feature.

 One, the business has income issues, and paying cash to employees is more manageable.

Two, the employee might not have a salary bank account and cashing on a paycheck is difficult and/or costly, and direct deposit is not viable. Organizations cannot just pay cash to employees for work performed. There must some sort of paper trail as proof of salary dispatched to employees. These are;
  
 How did the employee receive the money?

·         When did the employee get cash?

·          How the gross pay was calculated?

·         What was the gross pay versus net pay: What expenses were withheld from the compensation?

Each and every one of these is a potential issue that could emerge if the employee questions the compensation, or in case of a business tax calculation or work compensation review.

Here is how to pay cash to employees using QuickBooks Support USA feature, while shielding the business from potential issues:

The business must be set up with some sort of payroll administration. Either QuickBooks must be empowered to perform payroll, or an external administration must be utilized. Whichever way, it does not make a difference, but rather, payroll taxes and so forth, should be registered effectively

2   Produce a paycheck in the typical way, utilising the checking account to retrieve from, or an exceptional checking account for payroll, in case QuickBooks Help features one.

3   Have the employees acknowledge the checks – they are signing it over to you.

4   Pay cash to employees. It must be the definite sum on the checks, to the penny. No fudging here! This is imperative, on the grounds that the money paid out must reconcile to the amounts on the checks. In case the sums are not correct, it will be hard to reconcile them.

5.       Take the checks to the bank and deposit into your current checking account. Try not to void them in QuickBooks. Despite the fact that voiding them has the same net impact on the bank balance; the accounting software can't register the gross pay and payroll taxes effectively in case they are voided.

Another option is to make "dummy" checks on paper. Ensure the employees put their signatures on them. Then, pay them cash.

The Signature of the employee on the "dummy" check is significant and they can't state that they were not paid.

Tailing this strategy, you are just cashing the money the paycheck of your employees. This leaves a decent paper trail for your accountant to record. Everything is spotless, above-board, and straightforward.

If you have any concern or need clarity to use the aforementioned feature, please call our QuickBooks Technical Support Number USA for further assistance.