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I'd be happy to share some information about your concern, windylou.
Since QuickBooks wont allow to create a negative net paycheck, you'll need to write off the unpaid advanced balance.
Let's first create an expense account to track the bad debt/ Write off. Here's how:
- Go to the Lists menu and select Chart of Accounts.
- Select the Account menu and then New.
- Select Expense, then Continue.
- Enter an Account Name, for example, Bad Debt.
- Select Save and Close.
Create an additional payroll item under the Bad debt expense account:
- Click List at the top.
- Choose Payroll Item List.
- Click Payroll item at the bottom and select New.
- Choose Custom Setup.
- Choose Addition and click Next.
- Enter the name (Write Off) click Next.
- Choose the Expense account you've created and Hit Next and choose None for Tax Tracking type.
- Click Next four times and Finish.
Once done, use the write off item to offset the negative amount.
Lastly, you might also want to consult your accountant about this process.
Stay around if you need anything else.
