What is an advance payment?
An advanced payment is a net payment you make to the employee. This is then deducted from their net pay the next time they're paid.
You might use an advance payment in the following scenarios:
They missed the payroll cutoff when they first joined the company, and there's a long period before their next payday.
They have a home or family emergency.
A mistake was made with their normal monthly pay, and it requires a correction that can't wait until the next payday.
Advance payments in PayFit
There are two types of advance payments that can be used on PayFit:
A payment made outside of the payroll and deducted from their current month's pay.
A payment made through this month's payroll, then deducted from their pay next month.
A payment made outside of the payroll and deducted this month
In this scenario, the payment made outside of the payroll will simply be deducted from this month's payroll as a net deduction.
To set up the deduction:
From the employee's record, choose the Pay items tab.
Under the Additional deductions section, click Add a new deduction.
From the Deduction type drop-down, select Advance on this month salary.
If applicable, edit the Name to reflect what you'd like to be displayed on the payslip.
Select the Date and enter the amount to be deducted.
Click Save advance on this month's salary.
The deduction appears immediately on the employee's payslip.
Note: PayFit doesn't generate a bank file outside of the normal pay run. This means you need to make the advance payment outside of the payroll.
A payment made through this month's payroll, then deducted from next month
In this scenario, the employee will receive an additional net payment this month, which is deducted from their following month's pay.
To set up the payment:
From the employee's record, choose the Pay items tab.
Under the Additional payments section, click Add a new payment.
From the Payment type drop-down, select Advance payment.
If applicable, edit the Name to reflect what you'd like to be displayed on the payslip.
Select the Date and enter the amount to be paid this month.
Click Save.
The net payment will appear on this month's payslip, and the net deduction will automatically appear on next month's payslip.