Give an employee an advance

Before advancing pay, we recommend getting the terms of repayment in advance and in writing, especially if the future reimbursement will bring an employee's pay below minimum wage. 

Upgrade to a plan with Priority support to chat with Certified HR pros who can help. Once you follow these steps, your company will be responsible for paying the advance and recovering the amount from your employee on a future payroll.

To set up a payroll advance:

1. Click the Run Payroll tab.
2. Scroll to Other Payroll Options and click Run Off Cycle Payroll.
3. Scroll to the employee and click Enter Payment.
4. Click Reimbursement.
5. Type in the payroll advance amount.
   • This should be the take-home amount.
   • To change the payment method to check, click on Direct Deposit to toggle.
6. If you'd like, click on Add Personal Note to add a note to specify this additional payment is an advance. 
7. Continue to process payroll.
   • The employee will receive the advance in accordance to your company's payroll processing time. 

Once you've processed the payroll, be sure to set up a one-time post tax deduction for the amount of the reimbursement. On the next payroll, the amount advanced (reimbursed) will be deducted from the employee's pay and left in the company bank account.