How to handle payroll advances for hourly employees

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The user needs to do pay advances for hourly employees. They cannot use the pay advance functionality because it only works for salary and commission pay types. They also cannot enter a transaction on the following payroll for negative hours to reduce total hours paid, which they would need because the time is fed in via a time card system so the employee will be submitting their total hours worked.

If they set up a salary pay code for pay advances and paid an advance payroll on that pay code, would the amount offset the hourly pay on the next payroll automatically even if the amount for that pay period/code is 0 or would they need to enter a negative transaction in Payroll transaction entry themselves?

Also, does anyone have a better way?

Thanks!

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Bill Campbell 12 on at

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NOLA first I better ask if you are using US or Canadian payroll?

I am looking at Canadian - but I think at this level it could be the same.

When you set up the paycode for Advances - be sure to select that it is paid by the HOUR. If that is done, then when you do your batch, you can simple enter in Quick Transaction Entry the Paycode - ADVHR (Advance Hourly) into the Hourly batch for that employee and then you are off.

The system will then in the next pay period attempt to reclaim all of the Advance during that cycle.

Again, I have tested this on Canadian Payroll - GP 2010 and GP2013 R2

*** Follow up note - if you get to here and are running US Payroll - continue to read - this does not resolve the issue as US and Canadian payroll differ on this point. ****

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Terry R Heley Microsoft Employee on at

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What if they use DIA - Deduction in Arrears which is FREE and put the amount they owe in arrears to be recaptured? I did a blog on this as well, similar
https://community.dynamics.com/gp/b/dynamicsgp/archive/2013/01/29/draft-best-practice-for-tracking-a-401k-loan-in-payroll-or-any-money-owed-to-company-from-employee.aspx

Thanks

Terry Heley
Microsoft

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Community Member on at

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They are already using a deduction to recapture the money. Their problem is, they want the advance to reduce the gross pay on the following check and there is no way to reduce the hours other than remember to go into the transactions after they are brought over from the timesheet program and reduce the hours. They also are not happy that the hours on the GP batch would then no longer tie into the timesheet. They would like to see the gross pay in total then a negative for the amount that was already paid in advance.

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Bill Campbell 12 on at

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Nola, Canadian or US Payroll?

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Community Member on at

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US Payroll. Unfortunately, pay advances only work with Salary and Commission pay types so hourly codes are not available to be paid.

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Bill Campbell 12 on at

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Well that takes care of my Payroll knowledge - we are running Canadian Payroll and we are able to enter regular hours into the next pay and the reclaim automatically takes back the advance paid in the prior period.

Sorry I could not be of more assistance.

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Terry R Heley Microsoft Employee on at

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If they really want to enter negative pay, then there is an ISV that allows you to do this.

http://www.integrity-data.com/

We looked at/reviewed this a few years back, but the American Payroll Association frowns on it, so as a company we decided against it, but people still do it, up to the customer.

Thanks

Terry

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