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Level 3

Employee Advance and Repayment through Payroll

I am using Desktop Pro 2019 as well as the Payroll. How do I set up issuing an employee an advance and then deducting a set amount from their payroll check each pay period? I've searched the archives and can find nothing that fits for my situation. 


Thank you!


1 Comment
QuickBooks Team

Re: Employee Advance and Repayment through Payroll

It’s nice to see you here, @tcba2016.

You need to set up two payroll items to create an advance payment and repayment. Add them to the employee’s paycheck to record the transactions in QuickBooks. 

Perform these steps to make a Cash Advance item:

  1. From the Lists menu, select Payroll Item List.
  2. Click the Payroll Item drop-down and pick New.
  3. Choose EZ Setup, then hit Next.
  4. Select Other Addition for the item type and click Next.
  5. Follow the on-screen set-up until you can see the Finish button.

deduction 1.PNG deduction 2.PNG deduction 3.PNG deduction 4.PNG deduction 5.PNG


Now create a paycheck using Cash Advance. Here’s how:

  1. Go to the Employees menu and select Pay Employees.
  2. Mark the employee from the list and click Open Paycheck Details.
  3. In the Preview Paycheck, make sure you’re paying the employee for the full pay period.
  4. From the second column of the Other payroll item section, click the drop-down arrow and choose Cash Advance.
  5. Enter the dollar amount in the Rate column.
  6. Continue creating the paycheck.

Once done, prepare the Cash Advance Repayment item. Follow the same steps to set up a Cash Advance except, choose Other Deduction instead of Other Addition as the item type.

When the employee provides the go signal to take out the payment, add this payroll item in the Other Payroll Item section to reimburse the amount.

See these articles as your guide:

Reach out to me if have any questions or need further assistance. I'm always here to help. Have a fantastic day!

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