How to Record Employee Advance Payment in QuickBooks Payroll

QuickBooks Payroll was developed by Intuit to streamline Payroll Services for businesses, regardless of their size or nature. QuickBooks Payroll is a subscription that is added to the QuickBooks software, comprising well-designed features and tools.

If your business has a policy that allows you to give advances on upcoming payroll to your employees, you can use QuickBooks Payroll to record the advance. This guide helps you to record QuickBooks payroll advance and more about it.

The solutions offered can be used by the accountants to smoothly manage the payroll system of a company with complete accuracy and quality. The payroll software helps to design, customize, and print unlimited paychecks, file & timely payment of the payroll taxes on time.

Payroll software is further divided into three categories: Basic, Enhanced, and Full. The versions are featured according to different business requirements.

The QB Payroll Enhanced version offers powerful tools and features in comparison to basic and full-service payroll.

How to Record Employee Advance Payment in QuickBooks Payroll

QuickBooks Online Payroll supports advances by assisting you in setting a cash advance deduction and further forwarding the deduction to the employees. Consult your accountant prior to performing the task so that it brings profit to your business. The cash advance is provided to the employee in the form of a check, directly, but not through the payroll system. You need to set up the deduction to repay the Advance.

For setting up the deduction after the advance is given to the employee, follow the steps listed below:

1. Steps to set up deduction for repayment of a Cash Advance

• Select the name of your company name ➫ then select Payroll Settings
• Click Deductions or Contributions
• Select Add new deduction or contribution
• Select other deductions from the drop-down category
• From the Type dropdown Select Cash Advance Repayment from the type drop-down
• Enter a description -> then click OK.

2. Steps to assign a cash advance deduction to an employee

• Click Employees -> then the employee’s name
• Choose to edit in the Deductions & Contributions section, under Pay
• Select the cash advance deduction you created earlier
• Choose either $ amount or % of Gross Pay
• Mention the amount or percentage
• Enter the annual maximum amount, ➫ click save ➫ click OK.
• Deduction can be added to their check.

In case you are not able to perform the steps rightly you can connect with QuickBooks Payroll support. The customer support team is proficient enough to handle the issues smoothly and in a short time. Alternatively, you can contact us to resolve the QuickBooks payroll issues.

Frequently Asked Questions