Employee Advance through Payroll

Hello there, @texansgal01.

Good thing that you've already created a Reimbursement item tied to your Other Current Asset account. I have a clarification regarding the setup in the latter part of my response, especially that you don't want to affect the taxes. 

In regard to the Employee Advance item that you want to create within the payroll system, we can tie it up to the Other Current Asset account you've created by changing it in the Payroll Settings.

However, please note that we can't make it non-taxable since all the available pay types that can be assigned to that item in the Payroll system will always affect taxes.

As a workaround, you can issue your employee a regular check and utilize the Other Current Asset account you created in the Category details section. You can also add a description in the description field stating Employee Advance. 

You may refer to this screenshot:

Additionally, I'd like to clarify that your Reimbursement item in the Payroll system should be an Other after-tax deductions type, so it will not affect the taxes. You can check the sample below:

From there, you'll be able to exclude these deductions from taxes.

Feel free to reply to this post if you need further assistance.

Hi, @texansgal01.

Just checking in to see if the solution we shared worked for you.

Did it fix the issue, or are you still having trouble?

Happy to help if you need any more assistance.