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how to record an employee paid back part of his salary advance in cash

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QuickBooks Team

how to record an employee paid back part of his salary advance in cash

Hi bmkayali,


Thanks for reaching out in the Community! QuickBooks is a versatile program that enables you to get your work done faster. I'll be happy to provide more info on recording an advance paycheque for an employee.


Here are some steps you can follow: 


Method 1: Write and print a check.

If you choose to write and print a check, make sure to select the account where the advance payroll item is tracked. Then, when you create a repayment paycheck, the amount will be deducted from the account used to provide the advance.


Method 2: Pay through payroll

Step 1: Set up an advance payroll item

  1. Go to Lists, then Payroll Item List.
  2. Select Payroll Item ▼ dropdown, then New.
  3. Select Custom Setup, then Next.
  4. Select Addition, then Next.
  5. Enter the name of the item, such as Employee advance.
  6. Select the expense account where you want to track the item. Select Next.
  7. Set the tax tracking type to None. Select Next.
  8. Select Next twice. You don’t need to do anything on the next two windows.
  9. Select net pay in theGross vs. net window. Select Next.
  10. Leave Default rate and limit fields blank. You can add the amount when you create your employee’s paycheck.
  11. Select Finish.

Note: When you create a paycheck, the advance item and the amount must be added in the Other Payroll Items section.


Step 2: Run your payroll with the advance

Run your scheduled payroll with the advance payment or create an advance payment-only paycheck. Enter the amount for the advance as you run payroll.

I hope this helps! Let me know if you have any other questions.

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