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LYMaccounts
Level 1

How do I receive cash from a particular Employee?

 
3 Comments
IntuitLily
Moderator

How do I receive cash from a particular Employee?

Welcome to the Community, @LYMaccounts.

 

To ensure I'm on the same page, are you referring to a cash advance repayment from your employee? If so, you'll have to set up a cash advance repayment deduction in QuickBooks. 

 

However, I'd recommend consulting with your accountant or tax adviser first to ensure if this right for your business. 

 

Here's how to set up a cash advance repayment deduction: 

 

  1. Sign in to QuickBooks and go the Gear Icon.
  2. Then go to Payroll Settings and click Deductions/Contributions.
  3. Click Add new deduction/contribution.
  4. From the Category dropdown, select Other deductions.
  5. On the Type dropdown select Cash Advance Repayment.
  6. Enter a description, then click OK.

Once you're done with the setup, you can assign the cash advance repayment deduction to your employee: 

 

  1. From the left menu, go to Workers and select Employees.
  2. Click the employee's name.
  3. Edit the info by clicking the Pencil Icon in the Pay section.
  4. Click Add a new deduction and select the cash advance deduction you created above.
  5. Select either $ Amount or % of Gross Pay.
  6. Enter the amount or percentage. You can also enter the annual maximum amount if needed.
  7. Select OK, then Done.

You can check this article for additional details: Set up cash advance repayment deduction.

 

If you're referring to a garnishment, you may refer to this article: Setting up a wage garnishment.

 

Let me know if you have additional questions. I’m always here and ready to help. Take care!

LYMaccounts
Level 1

How do I receive cash from a particular Employee?

Thank you for providing the solution. However, there is no option of PAYROLL SETTINGS when I go to the GEAR icon. Hence I cannot execute the instructions you have given. 

 

Is there another way?

 

JaneD
Moderator

How do I receive cash from a particular Employee?

Hi LYMaccounts,

 

You can directly set up the cash advance repayment deduction item to the employee's profile.

Here's how:

  1. From the Workers menu, choose the Employees tab.
  2. Locate and click on the employee's name.
  3. In the Pay section, click on the pencil icon.
  4. Click on + Add a new deduction under Does (employee's name) have any deduction? (Examples: retirement, health care).4.PNG
  5. Set the following information:

    Deduction/contribution or garnishment: Deduction/contribution
    Deduction/contribution type: Other deductions
    Type: Cash Advance Repayment

    Capture.PNG

     

  6. Then, enter the rest of the information.
  7. Once done, click on OK.

Otherwise, record the cash through a journal entry. Beforehand, I'd recommend reaching out to an accountant or tax adviser for further guidance and discuss which accounts to be used in recording a journal entry.

Here's a handy article just in case you want to reverse a journal entry: Reverse or delete a journal entry.

 

Let us know if you have further questions. We're always here to help.

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