Learn how to pay an advance to your employees in QuickBooks Online Payroll and QuickBooks Desktop Payroll. Then set up a payroll deduction to claim back the amount of their advance from each paycheck.
Advance pay is a great way to help your employees out in a pinch. You can set up an advance item to pay them. Then, set up a deduction item on their paycheck to get your money back.
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|Note: Not sure which payroll service you have? Here's how to find your payroll service.|
Step 1: Pay an advance to your employee
There are several ways to pay an advance to your employee. You can:
- hand them cash
- create an advance item-only paycheck
- write and print a check (desktop only)
If you choose to create a paycheck for the advance, you'll need to set up an advance pay item.
Now that you've set up your employee advance payroll item, it's time to create a paycheck with it.
Step 2: Set up an advance repayment item
Set up a cash advance repayment item to get your money back from your employee.
Step 3: Create a paycheck with the repayment payroll item
Create a paycheck with the advance repayment item. If the advance is more than the amount of your employee's pay, you’ll need to collect it over more than one paycheck.