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:
Click + Create and select either Expense or Cheque.
Enter the employee's details.
Assign your Employee Advance account under the Category section.
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.
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