HELP....I have a client that just started payroll and she takes advances, and she is a c corp....wants to do her tax deposit every quarter based on advances....we have been able to figure that out but the advances goes into the liablity account and its alrady been paid out....
Why does she take advances instead of paychecks? Anyway, you can set up an account for employee advances as an other asset account (it is a receivable from the EE). Then, you need to set up two payroll items--addition for the amount advanced to the employee and a deduction for repayment of the advance (put an annual limit so it will quit deducting when the advance has been repaid). Point the addition and deduction to the other asset account--EE advances. Try it in a practice file to see how it works.
Consider the advance as net p/r and gross it up.
When the taxes are computed close the advance to the p/r account.
