The only time this would be loan is when they "take" money casually, they post it as payroll expense, you catch them at it, you change that to Loaned to Shareholder, you run that Gross through payroll, and you withhold the net take home against the total they "borrowed." That's one way to Fix this at the end of the year = one payroll date. For instance, someone is on payroll and also using corporate funds personally or taking "draws" and this is my recommendation to their payroll clerk when we are reviewing the year end.