Is there a way to set up a payroll advance account instead of advances going thru the due to owner account?

Hi kapreston,

You've come to the right place for help. I'll be glad to share more info on this.

If you'd like to issue an advance, the cash advance itself will need to be issued as a Cheque. You'll set up a new account in your Chart of Accounts called Employee Cash Advances for reporting this expense. To create this account, click the Accounting tab on the left navigation, and select Chart of Accounts. Select New at the top left corner to create a new account. 

To create a cheque, click the Create (+) menu > Cheque. 

The next step is to deduct this amount from your employee's pay cheque so they're not overpaid. Here's an article that'll guide you through the steps to set up a cash advance repayment to be deducted from an employee's next pay cheque: https://quickbooks.intuit.com/community/Help-Articles/How-to-give-an-employee-cash-advance-pay-on-th....

I recommend consulting with your accountant or tax adviser before setting up a cash advance repayment deduction. 

If you've decided to use the cash advance repayment deduction, it's important to note that because the pay and deduction report to two different account types, they'll show separately on reports. To balance these accounts, you can create a journal entry debiting the Repayment asset account, and crediting the Reimbursement expense account. Here's an article that helps explain the journal entry tool: https://quickbooks.intuit.com/community/Reports-and-Accounting/Create-a-journal-entry/m-p/262076. 

If you have any questions, please feel free to comment below. Otherwise, enjoy the rest of your week.