How to deduct cash advance already taken by the employee prior to the next scheduled paycheque?

Step 1: Recording the advance (loan)

1. Create an interim paycheque.
2. Zero out every fields in every tabs.
3. In the Income tab, enter the cash advance amount in the Loans field for This Period.
• A Loan is non-taxable.
• An Advances is taxable.
• Since the employee was not taxed at the time of handing out the 'cash advance', then you have to use Loan.
4. Click Report, Display Payroll Transaction Detail.
5. There should only be two entries matching the loan amount.
1. If not, then there is one or more field that need to be zero'd out.
6. Click Post (or Process).

Step 2: Repaying the advance

1. In the next scheduled paycheque, enter a negative amount in the Loans field for This Period matching the amount the employee is refunding the company.
2. Fill and process the rest of the paycheque as you normally would.