QuickBooks Tips & Tricks RECORDING EMPLOYEE ADVANCES
Detailed directions on how to record an employee advance. Two examples are shown. 1.) The Company purchases something for the employee and the ...
Employee Advance and Repayment
Processing employee advance checks, and repaying the advance on subsequent paychecks.
For low-wage employees, this means you may need to spread the repayment period out over several paychecks. State law might set more protective rules for employees. For example, some states allow employers to deduct money from an employee's paycheck to repay an advance only if the employee agrees to the deduction, in writing.
A cash advance to an employee is recorded with a debit to an account such as Advance to Employees or to Other Receivables: Advances. The credit will be to the account Cash. If the cash advance is expected to be repaid within one year, the account Advance to Employees will be a current asset account.
An employee advance form is a document that an employee uses to get an advance payment for the services that he or she is to render in the future. It includes the information about the cash advance being asked for and other data about the transaction that will be done.
If an employee files a complaint about illegal payroll deductions to the Department of Labor following repayment of an advance, it's the employer's responsibility to prove he made a legal deduction.
To assign the cash advance repayment deduction to an employee: Intuit Online Payroll. Click Employees. Click the employee's name. Click Edit in the Deductions & Contributions section. Click the dropdown arrow and select the cash advance deduction you created above. Select either $ Amount or % of Gross Pay. Enter the amount or percentage.