Advance Payments are used when the employee is given an advance on their salary. For example, an employee earns €1,200 each month. But in a particular month, the employer will give the employee €200 in the beginning of the month and the remainder with the normal payroll at the end of the month.
To make add an Advance Payment to an employee, you will need the 'View/Manage All Employee Data' and 'Manage Employment Position History' permissions to set up a monthly advance payment, and 'Manage Payroll' Permission to add a one-off to payroll.
Monthly Advance Payment
If the Advance Payment is given every month to the employee, then this can be added to the employee's Position. The amount inputted here is a monthly amount. This amount will be added to each month's payslip when you calculate payroll.
To input an Advance Payment in an employee's position:
- Go to the People section;
- Select the employee's profile;
- Click on the Employment tab;
- Click the edit icon on the relevant position;
- Go to Other Payroll Information and add the advance payment amount in the field called Monthly Advance Payment (this is a positive amount);
- Click save.
Note: If the employee has already been added to payroll for that month/period, you will need to refresh the payslip calculation for this employee in order to see the change.
One-off Advance Payment
If the Advance Payment is to be a one-off payment for one particular period, this can be added to the payslip after payroll is calculated. You will need to add the advance payment amount in the Advance Payment field.
To input a one-off Advance Payment in an employee's payslip:
- Go to the Payroll section;
- Click on the relevant payroll;
- Click on the relevant employee;
- Add the advance payment amount in the field called 'Advance Payment' (this is a positive amount);
- Click save.
- The Advance Payment amount are to be added in positive amounts not negative.
- The amount added is Taxable and will be deducted from the Net, not the Gross.
Advance payments can also be added to a payroll in bulk. For more info on this, click here.