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Deductions from payroll for personal charges on company credit card

I've run into a problem with how to make deductions from payroll for employee purchases made on company credit cards. (We're processing payroll using QuickBooks Pro 2006)

So here's the specific scenario causing the trouble...

We occasionally have employees who make personal purchases on their company credit card (usually for gas because they're so short on cash that they can't make it to work otherwise). When it comes time to reimburse the company for their purchases, we take a deduction from their mileage for that pay period.

This system has worked well, but occasionally we have a situation where the employee doesn't log enough mileage to cover their fuel purchases. How does everyone else handle repayment of personal charges made on company credit cards?

Is it better to just keep it separate from payroll and require that the employee cut a check back to the company at the time payroll is issued?

Any insight would be greatly appreciated.

Reply to
karsea
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Create a payroll item for the deduction. Be sure to identify it in the set-up as an after-net item. You can create one for mileage also which would be an addition to net. Both will affect the net check but not the taxes.

Reply to
Joanne

Don't net it against the milage reimbursement the company pays the employee. You lose your audit trail doing so. Set up a deduction for personal credit card expenditures instead. Having the employee issue the company a check is also an option.

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Reply to
Allan Martin

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