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Barb75036
October 2, 2022
Question

Cash advances for salaried employees

  • October 2, 2022
  • 1 reply
  • 0 views

Hi,

I have a salaried employee who is asking for an advance on her next paycheck. 

I'm not sure what's the right way to do it:

1/ do i have a way to trigger her next pay, which should be paid out in a week, earlier and QB will let me do it even though she's on auto payroll?

2/ do i have the ability to do a cash advance in payroll but then what's the process and does she have to reimburse me through deduction oon the following paycheck? If so, can somene give me the step by step to do it in QB online?

To make things harder, she's taking paid vacation days so shouldn't this paycheck reflect the use of the paid vacation days but then will it interact with any advance calculation?

 

Thank you for anyone's help on this....

1 reply

C
Charies_M
October 3, 2022

Good day, Barb75036.

 

I can help you create an advance payment for your employee in QuickBooks Online (QBO).

 

You'll want to create an advance pay item and use in on your employee's paycheck.

 

  1. Go to Payroll, then Employees.
  2. Select your employee.
  3. Configure the Other Earnings type, select Start or Edit.
  4. Rename it to Advance item.
  5. Select Save, then Done.

Here are some articles that you can check out about creating payroll items for your reference:

Then, you'll want to set up a cash advance repayment deduction:

 

  1. On the top menu, click the Gear icon.
  2. Choose Payroll Settings.
  3. Select the Deduction tab.
  4. Click Add A New Deduction/Contribution.
  5. On the Category dropdown, select Other deductions.
  6. Select Cash Advance Repayment for the Type.
  7. Enter a description and then click OK.

Next, assign the cash advance repayment deduction to your employees:

  1. From the left menu, go to the Workers tab.
  2. Under the Employee list, click the employee's name.
  3. Click the Edit (pencil) icon in the Pay section.
  4. Go to the Does *Employee name* have any deductions? section and click Add a new deduction.
  5. Select the Advance Repayment item.
  6. Enter the specific amount.
  7. Click OK to save the changes.
  8. Proceed with the other employee's profile and follow the same steps.

I also recommend seeking an accountant for an expert's advice to ensure there will be no problem with the books in the future. For additional reference, you can check this link: Set up cash advance repayment deduction.

 

That should automatically have the deduction item on the employee paycheck on the next payroll schedule.

 

Learn more about the the steps above through this article: Set up and repay employee advances

 

Should you have other questions managing payroll, just leave me a comment below. Have a good one.

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