Hello there, terrij916,
In QuickBooks Desktop, if you pay an employee an advance on their paycheck, you'll want to Write Check. Here's how:
- Click Banking on the menu.
- Select Write Check.
- Select the bank account from the Bank Account drop-down list.
- Select the date for the check.
- Select the employee from the Pay to the Order of drop-down list, and click OK in the warning screen.
- Enter the dollar amount of the advance below the check date.
- Select the account from the Expense tab Account drop-down list.
- Check the Print Later box next to the Print icon.
- Click Save & Close.
Next, set up a deduction payroll item to pay back the advance:
- Click Lists, then Payroll Item List.
- Select the Payroll Item button, and click New.
- Select Custom Setup, and click Next.
- Select Deduction, and click Next.
- Enter the name of the payroll item that will be easily identifiable (such as Advance Payback), and click Next.
- Leave the first two fields blank, select the account which will be affected by this payroll item in the Liability account drop-down list, and click Next.
- Make sure None is selected in the Tax Tracking Type window. Select Next.
- Leave the taxes unchecked, select Next.
- Select Neither in the Calculate based on quantity screen, select Next.
- Select Net pay, and select Next.
- Select Finish.
In order to deduct an employee's loan weekly, you can set up other payroll items through their profile and manually enter the amount when it's time to take out the loan payment.
Here's how:
- Double-click the employee's name to edit.
- Click the Payroll Info tab and
- Go to Additions, Deductions and Company Contributions and click Add New.
- Select Deduction and click Next.
- Select net pay and hit Next.
- Click OK.
- When it's time to take out the loan, enter the amount.
Stay in touch with me if you have questions about the process. I'll be here to answer them for you.
