How to Record Payroll Deduction

I asked my employer to deduct $150 from my pay for a donation to a charitable organization our company was giving to for Christmas. I have the $150 in a Donations category in my budget. But if I just record the money going out from that category, I am losing it twice since my paycheck was also $150 short. I need to somehow record the money coming in first, even though I didn't actually ever have it. I tried doing a transaction in my checking that was $150 in and then $150 out from the Donations category, but it wants a category for the $150 in half of the transaction and I'm not sure what that would be.

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    • WordTenor
    • Can we agree that goals are dumb and immature? Sure.
    • WordTenor
    • 10 mths ago
    • 4
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    The easy answer is not to do this: you'll have the relevant record from your paystubs for end of year accounting, plus the charity will give you a statement if asked. Just move the no-longer needed money from charity to wherever you want it.

    The long answer is you'll do a split for your income. The top line of the split will be your net income, the first line of the split will be Income TBB for your net income + $150 and the second line of the split will be $150 coming out of charity. 

    Like 4
  • If you do WordTenor's easy answer, you have the option to move $150 from you Charity category to To be Budgeted and then use it elsewhere.

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  • Thanks for the suggestions. I did do a split, but just for the $150 - incoming TBB with memo of 'payroll deduct' and $150 out from the Donations category.

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  • 10 mths agoLast active
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