How I can post Employee cash advance, I need to know Category and type. and once we post journal how we get each employee name.

Good day m.shafeeq,

I'm here to help you set up the Cash Advance.

If you're referring to setting up Payroll Cash Advance, we only need to create a payroll deduction to pay back the advance. Let me walk you through the process:

1. Go to the Gear icon.
2. Select Payroll Settings.
3. Click Deductions/Contributions under Payroll.
4. Click Add a new Deduction/Contribution.
5. Select Other deductions for the Category.
6. Select Cash Advance Repayment for the Type.
7. Enter a name in the Description field.
8. Click OK.

Please take note that the payroll feature is not supported in the QuickBooks Online International version. I'd suggest consulting an accountant for the best practice on how to record the payroll cash advance. Here's an article that will walk you through with entering manual payroll in QBO: https://community.intuit.com/articles/1145322.

If you'd like to set up employees to show on your Journal Entry, please follow the steps in this article: https://community.intuit.com/articles/1614743.

Don't hesitate to post your questions, if you have any, in the Comments section below. I'll do my best to help you out.

Hi. How to record Cash Advances / Cash Deductions to be set off against employee expenses?

I can help you record an employee cash advance, rkumar1.

First, you'll have to create a reimbursement item. Here's how:

1. Click Workers, then go to Employees.
2. Choose the employee, then click to open the profile.
3. Click the Pencil icon next to Pay.
4. Under How much do you pay Employee?, click Add additional pay types.
5. Put a check mark in the Reimbursement box, then click Done.

As for the cash deduction, you can follow my colleague @SophiaAnnL's steps.

When you create a paycheck, you can record the advance/deduction. 

Feel free to visit us anytime if you have other payroll concerns. Have a good one! 

Would you please guide me a manual procedure (Without Payroll) to record employee advance payment with their name? and how to generate individual employee report with names.

Hello dear, WellNetworks.

We can make journal entries when recording for employee's advance payment. I'll help you get where's the journal entry located in your book. Click the +New button and select Journal Entry under Other.

Select an account in the Account column and enter the amount from both Debit and Credit columns.

For further assistance, it would be best to reach out to your accountant to completely set this up. They'll be the one who can help you record the advance payment and the other accounting side. The report is only available when using payroll.

If you have other questions, get back to me so I can help you figure them out! Take care!

Is Reimbursement the only way to create a cash advance payment/payroll loan to an employee?  Reimbursement isn't really the right term for this.  I use reimbursement to pay back employees for gas or misc items they may have paid for out of pocket.

An employee needs a payroll loan and I need to know how to make the payment to him.

Thank you

I'm here to assist you with payroll pay types, carolannb.

Cash advance and payroll loan payment is different from reimbursement. The first two are deductions which will decrease your employees pay.

Reimbursement is the right way to repay or compensating your employees for any business-related expenses that they has paid. In addition, this pay type is nontaxable. That means, this won't reflect on either 941, 940, or W-2.

You can follow the steps shared by Kristine Mae in setting it up. Also, here are the guides to understand more about reimbursement and other pay types.

I'm always here to help if you need more guidance. Wishing you all the best!

Hello again:

You have not answered my question.

I understand that I need to set up a repayment from the employee for the cash advance but I need to know the first step which is How to Pay a Cash Advance/Payroll Loan amount to the employee in the first place.

The instructions I am finding only give the second half of the equation and I need how to begin.

An employee needs a cash advance today and it does not appear to me that there is a way to pay this to him other than through Reimbursements in the payroll.   It there another way to generate the payment to him?

Thank you

Does using the Reimbursements for the Cash Advance/Payroll Loan affect the monthly reports?

There should be an option for Payroll Loan directly in the payroll module as there are in other programs I have used. It is not actually a reimbursement.  Rather frustrating.

We don't want you to feel this inconvenience, @carolannb.

As my colleague, @AlexV's response, payroll loan is different from reimbursement. You can create a new deduction pay type to generate the payroll loan payment from your employee.

1. Go to Workers.
2. Select Employees.
3. Find and open the profile of your employee.
4. Under your employee name, click Edit employee.
5. On the Pay tab, go to box 5.
6. Click Add a new deduction.
7. Select Deduction/Contribution.
8. Under Type, select Cash Advance or Repayment.
9. Enter the amount of the loan payment.
10. Click OK.

In addition, any paycheck details you created will always reflect on your monthly reports.

You can always visit our Employees and Payroll Taxes articles in case you need some reference in handling your future payroll transactions.

Let me know in the comments if you have any other questions. We are always around ready to lend a hand.

 I have a similar issue to the original poster.

I know how to set it up to have a payroll deduction to have my employee repay an advance.

How to I pay my employee an advance through payroll's direct deposit? There is no non-taxable pay-type besides reimbursement, which is used for something else.

Hi RaynesV.  Thanks for responding, now let me get you back on track. Currently, in QuickBooks Online there are limited pay types available. However, paying an employee an advance is quite possible.

To do this in QuickBooks Online, all you need to do is add a new reimbursement type. Depending on which payroll product you use, the steps may be a bit different. But here's a quick guide on how to do so:

1. Click Workers on the left menu, then select Employees.
2. Find and choose the employee in question
3. Then select the edit (pencil) icon beside Pay.
4. Under the How much do you pay, select Add additional pay types.
5. Select Even more ways to pay... drop-down, then select Reimbursement. 
6. Now, rename the pay type by clicking the edit(pencil) icon next to Reimbursement  
7. Select Done.

If your options look slightly different, refer to our article on Creating a reimbursement pay type in Online Payroll for a step by step guide. 

If you're anything like me, you'll want to read more on pay types as well. So here's an article on Supported pay types and deductions. The article provides some further insight into any limitations you may run into while paying employees with Intuit Payroll Products. 

I hope you have a great rest of your day, and if you need anything else I'm always here to help. 

Wow! You guys REALLY aren't getting the original poster's issue! It is pretty simple, but you guys keep jumping back to how to get your money BACK from the employee - not the proper way to GIVE it to the employee.

https://quickbooks.intuit.com/learn-support/en-us/regular-payroll/create-an-employee-advance/00/6752...

Hi!

I gave an employee and advance and need to try to record it in Quickbooks Online.  I tried to use your Reimbursement method, but this employee is salaried and I can not undo the salary.  I did add in to her deductions cash repayment.  So what account would I need to use if I just make a journal entry so it would apply to the correct account when she repays the loan on her paycheck?

Thanks for your help!

That link is for Desktop.....it won't work that way in Online.

Good day, brooke17.

Thanks for joining us here! Let me show you how to record the cash advance to an employee in QuickBooks Online.

You can set up an Asset account to track the cash advance. You'll want to name it as Employee Cash Advances or anything you like. 

Instead of a Journal Entry, we can record the advance payment using a check. Simply go to the +New button, select Check, enter the details needed, and the employee as the Payee. Make sure to choose the asset account you created.

Then, we need to create a payroll deduction that we'll use to take out funds for the repayment. Please check this link and follow the steps on the QuickBooks Online Payroll section: Add or edit a deduction or contribution.

Once done, we need to update your payroll accounting preferences so that the deductions will be posted to the right account. 

1. Go to Gear icon and Payroll settings.
2. Click the Accounting under Preferences.
3. From the Other Liability & Asset Accounts, change the Cash Advance Repayment account to the asset account you created.

Browse these articles for more details:

• Payroll accounting preferences
• Run payroll reports

Post again here if you have more questions. Wishing you all the best!

Thanks for your help!!  That is exactly what I needed to know!

I know it has been a year, this is for those who come across this now.  

To record the cash payment / categorize it

In Chart of Accounts - New

Other Current Assets - Employee Cash Advance.

a little belated but....THANK YOU FOR FINALLY ANSWERING THE QUESTION THAT NO ONE ELSE SEEMED TO GET!  VERY HELPFUL....

What would be the expense for it? 
I paid my employee with an e-transfer and collected it back on her next paycheck.  I know I need to do a journal entry and I have the asset set up it's the expense now.  Would I just categorize the e-transfer and an expense?

Sorry for the questions!

your approach works in terms of $$ in big picture, which is great, but the advance itself is not included in the Payroll module if you record it as a check.

I need to be able to run a payroll report that shows both.  otherwise it requires unnecessary time to run a transaction report (for the advance paid via check) & combine it with payroll detail report data (for the repayment).  the combination report approach also increases risk of errors.

how can both the advance and the repayment be recorded in the Payroll module.

Thanks for joining us here, 1865MTP.

You're right. The transaction will not be included in the payroll reports if you will record it as a regular check. 

For the cash advance, you can create an addition item that will be included in the paycheck. Here's how:

1. Go to the employee's profile and proceed to the Pay types section.
2. Click Edit ✎ in the right-hand corner and select Other Earnings.
3. Type in the name and amount of the cash advance.
4. Click Save.

Once done, it will automatically show up when creating paychecks. You can also create an unscheduled payroll if you want to separate it form the regular paychecks. Here's an article as a guide: Create and Run Your Payroll.

Once the employee is ready to repay the advance, you can set it up as a deduction item. Follow these steps on how to do it:

1. Go back to the employee's profile and proceed to the Deductions and contributions section.
2. Click Add deduction/contribution.
3. From the dropdown menu, add the following:
   • Deduction/contribution: + Add deduction/contribution.
   • Deduction/contribution type: Other deductions
   • Type: Cash Advance Repayment
   • Description: Add a deduction name, such as Cash Advance Repayment.
4. Select Flat amount.
5. Enter the amount to deduct from your employee’s paycheck.
6. If you need to collect the advance over more than one paycheck, enter the total amount owed in the Annual maximum field.
7. Click Save.

After that, include the deduction in the employee's paycheck until the full cash advance is repaid. Additional information about the steps are also discussed here: Set Up and Repay Employee Advances.

For additional guidance and references, let me also share these articles with you: 

• Create a Payroll Summary Report in QuickBooks 
• Run Payroll Reports 

Don't hesitate to reply and ask more questions if you ever need when running payroll. We're also here to help with any QuickBooks-related questions.