Employee Advance

[diamondJ]

I issued an advance to an employee, but I'm having trouble setting it up in PT.


When I go under the EmployEE tab, it doesn't let me add another line for the advance field.


What am I doing wrong?

[dderolph]

Have you look in Pt's Help? It has some rather detailed instructions on setting up withholding to collect advances to employees. I haven't absorbed it completely, but I'm under the impression the advance would normally be recorded as a loan, which makes sense since it is a loan. Therefore, the advance, itself, is not subject to withholding; it's just an amount paid to the employee as a loan. Then, a special witholding element is set up in payroll, just it might be for certain other items such as a child support garnishment, etc.

As Help says, you have to go into Maintain, Default Information, Employees and set up a code, and go to the payroll tax tables and set up a code for this.

[David Palmer]

Here's what I do. When an employee is given an advance it is debited to an asset account, Employee Advance Receivable.

In the payroll system I created an employEE field named Advance with the G/L reference to the Employee Advance Receivable.

The individual employee with the advance then has a minus amount placed in their employEE field advance line. Do not enter a positive amount or it will be added to the check.

Payroll result is that the advance is deducted from the payroll check with no impact on taxes and is entered as an offset to the amount advanced in the asset account.

[diamondJ]

<<<<I created an employEE field named Advance >>>>>>

This is where I run into problems. I can't seem to create the new field.

[David Palmer]

Did you try in the:
maintain>default information>employees>employEE fields
window?

[tracey]

We use an Employee Advance. First you must make sure you have a G/L account for the Employee Advance and then under that Employees Card - Employee Fields enter:

Field Name: Advance - G/L Account then amount must be a negative amount. This is then taken out from Net dollar amount on their paycheck.