Benefit In Kind - Compensating the Employee

SaleemBeg

Hi all,

Owner of a small company here. As an employer, I decided to contribute to an employee’s certain type of personal expense. So I pay him directly, rather than paying his supplier.

I add that benefit to his Payroll (I am using Xero), and it appears fine.

I need to know, which account category should I record this outgoing money when I am reconciling.
Any help will be appreciated.

Katie

Hi there,

In Crunch Free, money paid to your employees for their payroll should be recorded as a Withdrawal.

You can add a new withdrawal from your Bank Reconciliation by clicking the ‘New Payment’ button or going to ‘Accounts and Cards > Withdrawals’ in your main navigation menu.

All the best,
Katie

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