You can advance a pay to a person, simply by entering the appropriate transactions into the persons timesheet. Advances occur in many situations:

  • When an employer agrees to advance a persons future earnings.
  • When an employer agrees to advance annual leave at the start of the leave (e.g. when the person is going on an overseas trip and has asked for some money in advance).
  • When a person finishes and receives their final pay - they may have time in lieu or annual leave to be paid on their last day.

When advancing money, there are two important steps to follow:-

  1. Change their Paid To Date, so they do not receive the money again.
    Note: This happens automatically when finishing a person.
  2. Adjust the tax calculation, to deduct the correct PAYG.

1. Change the Paid To Date

  1. Click on the This Pay To date (displayed below the person's timesheet when you are entering timesheets).
  2. Enter a new Paid To Date (or select a date from the calendar).
  3. Press the Change Paid Up To Date button.

The person will no longer be paid until this date passes. (The persons Timesheet Template will not be copied over when opening as payroll, but you can still Add a Timesheet if you do need to make any payments before this date).

2. Adjust the Tax Calculation

  1. Select the PAYG transaction on the person's timesheet.
  2. Change the Quantity to be the number of pay periods that are being advanced.
  3. Press the Change this Transaction button.

The correct tax will now be calculated. If this step is not performed, the person may be taxed too much as their earnings for this pay will be higher than usual.