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February 19, 2024
Question

Can no longer enter 'cash advance' on payroll

  • February 19, 2024
  • 1 reply
  • 0 views
i used to be able to enter a 'cash advance' and now there is no place to do so.

1 reply

February 19, 2024

Good day to you, @fbcooper.

 

I see how important enter cash advance to your employee. Let me provide details steps to resolve this.

 

Did you record the advance payment? What pay type did you use? Entering cash advance to your employee needs to create a paycheck for the advance, then set up another earnings pay item and rename it as "Advance Payment."

 

Here's how:

 

  1. Set up Other Earnings pay type.
  2. In the Additional Pay Types section, select Other Earnings. Select Edit ✎ to rename it as Advance payment.
  3. Add the amount or enter it as you run payroll.
  4. When finished, select Save.

 

Once done, create a cash advance repayment item to get your money back from your employee. 

 

Here's how:

 

  1. Go to Payroll, then Employees.
  2. Select your employee.
  3. From Deductions & contributions, select Start or Edit.
  4. Select + Add deduction/contribution.
  5. From the dropdown menu, add the following: 
    • Deduction/contribution type: Other taxable deductions
    • Type: Cash Advance Repayment
    • Description: Add a deduction name, such as "Cash Advance Repayment."
       
  6. Select Flat amount
  7. Enter the amount to deduct from your employee’s paycheck.
  8. If you need to collect the advance over more than one paycheck, enter the total amount owed in the Annual maximum field.
  9. When finished, select Save.

 

Once done, create a paycheck with the repayment payroll item. Don’t forget to remove the amount from the item when your employee is done paying back the advance. This way, it doesn’t keep collecting. 

 

In case this scenario presents itself again, these articles will surely guide you on how to handle it:

 


I'm always here if you need more help in handling cash advances in QBO. I'm just a quick post away. 

fbcooperAuthor
February 19, 2024

thank you.

 

Did QB change the 'cash advance' system?

 

We used it before to reclaim money or goods given to our employees as a 'cash advance'.

Let's say someone takes a dozen eggs.  We charge them $5 on cash advance so they don't

have to cash their check and bring us $5.

This used to work but it looks now very complicated.

 

 

 

February 19, 2024

Thanks for getting back to us, @fbcooper.

 

I'll share some details about cash advance in QBO.

 

The cash advance repayment that I have mentioned above is the the same as cash advance deduction to your employees.

 

Additionally, here's an article that you can browse to make your payroll more efficient: Create and run your payroll.

 

Lastly, I've also added this article for you to manage and update pay schedules: Set up and manage payroll schedules

 

Don't hesitate to reach us out if you have any other concerns about managing payrolls in QBO. We're always here to assist you. Have a good one.