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June 20, 2026
Question

how to I record an advance for an employee

  • June 20, 2026
  • 1 reply
  • 5 views
How do I enter in payroll an advance for an employee

1 reply

QuickBooks Team
June 20, 2026

QuickBooks Online Payroll doesn’t have a built-in advance payroll item, so you'll have to pay the employee off-payroll first. Before recording the payment, make sure you have a Current asset account named Employee Advance in your Chart of accounts. Once that's ready, follow these steps to track the payout:

 

  1. Click + Create and select either Expense or Cheque.
  2. Enter the employee's details.
  3. Assign your Employee Advance account under the Category section.
  4. Review the transaction and click Save and close.

 

Next, create a repayment payroll item to track the advance payment, then add that deduction item to the employee's profile. For step-by-step setup details, check out this guide: How to give an employee cash advance pay on their paycheque

 

Feel free to reply here if you have additional questions.