A advance to an employee is typically a short lived loan by a corporation to an employee. In other words, the corporate is that the lender and therefore the employee is that the borrower. The advance must be reported as a discount within the company's brokerage account and a rise in an asset account like Advance to Employees or Other Receivables: Advances. (If the quantity is predicted to be repaid within one year, this account are going to be reported as a current asset.) If the advance is repaid through payroll withholdings, the quantity withheld are going to be recorded as a credit to Advance to Employees.