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:
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.