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Community Contributor *

How to "pay" payroll liabilities when a cash advance is repaid?

A cash advance was provided to employee.  It has been repaid by withholding $25 per paycheck until the $200 was "repaid".  These cash advance repayments are not sitting as liabilities that need to be paid.  How do I make these "go away".  There is no actual money to be paid.

 

How do I properly record them so they are zeroed out and no longer show as overdue liabilities to be paid?

 

I attached a picture below, in case my description of the issue isn't clear.

Solved
Best answer 06-27-2019

Accepted Solutions
QuickBooks Team

Re: How to "pay" payroll liabilities when a cash advance is repaid?

Hi there, @hcarley.

 

We'll have to use the Liability Adjustment tool to zero out the Cash Advance Repayment amount and remove them on the Pay Taxes and Other Liabilities queue.

  1. Go to the Employees menu.
  2. Select Payroll Taxes and Liabilities, then hit Adjust payroll Liabilities.
  3. On the Date field, enter the current date.
  4. For the Effective Date, select the last day of the pay period.
  5. Choose Employee radio-button, then enter the employee name.
  6. Go to the Item name section, select Cash Advance Repayment and enter $25.
  7. Hit the Accounts Affected button and choose the preferred setup.
  8. Click OK.
    1.PNG
  9. Once done, hit Next Adjustment. Repeat the steps 3 to 8.

For in-depth information, check out this article: Adjust payroll liabilities.

 

That's it! Keep me posted on the results, @hcarley. I'm still here to help you more if you have follow-up payroll questions.

3 Comments
QuickBooks Team

Re: How to "pay" payroll liabilities when a cash advance is repaid?

Hi there, @hcarley.

 

We'll have to use the Liability Adjustment tool to zero out the Cash Advance Repayment amount and remove them on the Pay Taxes and Other Liabilities queue.

  1. Go to the Employees menu.
  2. Select Payroll Taxes and Liabilities, then hit Adjust payroll Liabilities.
  3. On the Date field, enter the current date.
  4. For the Effective Date, select the last day of the pay period.
  5. Choose Employee radio-button, then enter the employee name.
  6. Go to the Item name section, select Cash Advance Repayment and enter $25.
  7. Hit the Accounts Affected button and choose the preferred setup.
  8. Click OK.
    1.PNG
  9. Once done, hit Next Adjustment. Repeat the steps 3 to 8.

For in-depth information, check out this article: Adjust payroll liabilities.

 

That's it! Keep me posted on the results, @hcarley. I'm still here to help you more if you have follow-up payroll questions.

Community Contributor *

Re: How to "pay" payroll liabilities when a cash advance is repaid?

@HoneyLynn_G 

Thank you so much!  That was much easier than I anticipated.  I really appreciate your help and the step-by-step tutorial.

QuickBooks Team

Re: How to "pay" payroll liabilities when a cash advance is repaid?

It's nice to hear back from you, @hcarley.

 

You are very much welcome with the steps. I'm happy I came across your post and was able to address your concern. Should you have any other questions that I can help you with, feel free to mention me on your posts.

 

For future use, I'm adding some more reference tools:

I'm wishing you all the best!

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