How do I give an employee an advance on their pay? I understand how to deduct it but can't find how to pay it out.

Hi sherryhagemeier,

Thanks for reaching out here.  QuickBooks Online provides options for situations such as this.  I'll be happy to share more information so you can decide the best fit!

If you'll be providing an advance without applicable tax deductions, you can create a cheque for the employee by going to +New > Cheque.  Fill in the required fields and select the associated account.  On the other hand, you can create a Bonus cheque in Payroll, for which we would calculate the associated taxes for you.

Here's how to create a Bonus cheque;

1. Open Payroll and then Employees from the left menu

2. Select the ▼ dropdown menu on the Run Payroll button

3. Hit Bonus only

4. Choose to run the cheque as Net pay or Gross pay and then Continue

5. Checkmark the box for the Employee to receive the bonus pay

6. Enter a Memo as you feel necessary

7. Preview payroll

8. Select the Pay method (if you'd like to change it from Direct Deposit to Paper cheque)

9. When finished, hit Submit payroll and then Finish payroll

You're all set!  Here's a helpful guide for your reference, to assist with setting up a cash advance payment deduction.

Feel free to let us know if this has been solved.  Your success is important and we're always pleased to help!