QB Issue Resolution:

Yes, as long as your state law allows. This is considered a voluntary deduction and employee advances or loans are certainly covered. See the following article on how to do this in online payroll

https://community.intuit.com/articles/1770957-voluntary-deductions-in-online-payroll

Note that if you use Full Service Payroll you have to call support to have them add the deduction item

Resolution for Issue 'Can a payroll deduction from an employee’s paycheck be used to repay an employee loan? If so, how do you designate the asset account that is decreased with each payment?' available: Yes (Solved).
Source: Intuit Community forum.

Can a payroll deduction from an employee’s paycheck be used to repay an employee loan? If so, how do you designate the asset account that is decreased with each payment?: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.

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