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roderick-tale-gm
Level 1

How to transact employee Cash Advances in QB Online?

Disburse cash to employees as Cash Advance and should not be treated as an expense.  This cannot be done through Add bill module.
1 Comment 1
LeizylM
QuickBooks Team

How to transact employee Cash Advances in QB Online?

Hi there, roderick-tale. 

 

I'll help you navigate to the program to transact employee Cash advances in QuickBooks Online (QBO). 

 

To create a paycheck for the advance, you need to set up another earnings pay item and rename it as "Advance Payment."

 

Here's how:

 

1. Set up Other Earnings pay type.

2. Choose Other Earnings from the section for Additional pay types. Click on Edit ✎ to change its name to Advance Payment.

3. Add the amount or enter it as you run payroll. 

4. Select Save. 

 

Once you're done setting up your employee, you can now set up a cash advance repayment deduction. 

 

  1. Select the Employees tab from the Payroll menu.
  2. Click the employee's name, then select Edit employee.
  3. Under Does this employee have any deductions? click +Add deductions.
  4. Select New deduction/contribution from the drop-down arrow.
  5. Select Other deductions from the Deduction/contribution type drop-down.
  6. Choose Cash Advance Repayment.
  7. Enter the description and amount.
  8. Once done, select Save.

 

You can check out this article for more information on how to handle cash advances in QBO: 

 

 

If you have further questions or need assistance with the process feel free to reach out. I'm here to help you make the most out of QuickBooks and ensure your experience is smooth and efficient. Have a good one!