Need to pay an employee in advance or loan them an employee some money? Easy - just set up a wage category to pay the money and a deduction category to record repayments. Both these payroll categories will be linked to You'll also need to create an asset account ( which will help you 'll need to create), so you can track all amounts advanced, repaid and outstandingkeep track of how much you've advanced, what's been repaid, and how much is outstanding. Let's step you through it. UI Expand |
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title | 2. Pay the advance or loan |
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| Pay the advance or loanWhen you process your payroll, enter the amount being advanced against the Advance in Pay wages category.
If you exempted the wages category from PAYG Withholding, the addition of the advance won't affect the amount of tax withheld. |
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title | 3. Record repayments |
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| Record repaymentsWhen you process your payroll, enter the amount being repaid against the Advance Repayment deductions category as a negative value. |
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title | 4. Track how much has been advanced and repaid |
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| Track how much has been advanced and repaidRun the Payroll Activity Detail report for employees who have been paid wage advances (Reports > Index to Reports > Payroll > Employees > Activity Detail). - The value of the Advanced in Pay wage category will show how much has been paid in advance.
- The value of the Advance Repayment deduction category shows how much has been repaid.
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| Do you use the Pay Liabilities feature? Because the advance repayment is set up as a deduction, it'll show on the Pay Liabilities window. You can remove it by processing a normal pay liability transaction, but in the Pay from Account field, select the Payroll Advances asset account. This will remove the amount from the Pay Liabilities window without affecting your account balances. |
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