How do I record a cash advance given to an employee prior to running payroll?

I’ve got your back, @swnw3902.

We can create a check in QuickBooks Online (QBO) to reflect the cash outflow and increase the liability on your books, indicating the total amount the employee owes. I’m happy to guide you through the process to ensure everything is recorded accurately.

1. Click the +New button, then Check.
   
2. Choose who did you pay in the Payee dropdown.
3. Select the Bank account from which the money will be made.
4. Fill out the remaining fields accordingly.
5. Once done, click Save and close.

When you’re ready to process payroll, it’s essential to set up a deduction item for the cash advance to ensure it reflects correctly in the employee's paycheck:

1. Navigate to Payroll, then Employees.
2. Choose the employee who received the cash advance.
3. In the Deductions & contributions section, click Edit.
4. Click + Add deduction/contribution.
5. From the dropdown menu, choose Cash Advance Repayment
6. Enter a deduction name, such as Cash Advance Repayment in the Description box.
7. Choose Flat amount and enter the amount you will deduct from the employee’s paycheck.
8. If the advance will be collected over multiple paychecks, enter the total amount owed in the Annual maximum field.
9. When finished, click Save.
   

After that, let's 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. 

We can then generate the Payroll Deductions/Contributions report to review these entries, please check out this article to learn more: Run payroll reports.

Additionally, Explore QuickBooks Payroll to elevate your payroll processing capabilities. Its features can assist you with managing employees' cash advances effectively.

Please let me know if you have further questions about recording employee cash advances in QuickBooks. I'll be here to help. Have a good one.