Employee Loan repayment

Good day, Stephanie. 

I'll walk you through the steps to record the employee loan to reduce the balance in QuickBooks Desktop. 

Let's set up an advance and repayment pay item to personalize the employee loan. Proceed with the following steps:

1. Go to the Lists menu, then Payroll Item List.
2. Select New in the Payroll Item drop-down arrow. 
3. Choose Custom Setup, then Next. 
4. Pick Deduction, then hit Next. 
5. Enter a name, such as Employee advance. 
6. Select the expense account used to give the advance in the Liability account field.
7. Set the tax tracking type to None, then click Next two times. 
8. In the  Gross vs. net window, pick Net pay and click Finish. 
9. Repeat the steps for the Cash advance repayment item. 

After that, add the item to the employee profile. Let me show you how: 

1. Go to Employees and select Employee Center. 
2. Choose the appropriate employee and click Payroll Info. 
3. Add the repayment item in the Additions, Deductions, and Company Contributions section. 
4. Hit OK. 

Once done, you can create a paycheck with the repayment payroll item for that employee. Please know that if the advance is more than your employee's pay, you'll need to collect it over more than one paycheck. 

Additionally, check out these articles below to reimburse employees, manage payroll information, and other related topics: 

• Workers and employees in QuickBooks
• Reimburse your employee in QuickBooks Desktop

Drop me a comment if you have more questions about employee loan payments. I'll be sure to help you some more. Take care always.