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Introduction

This topic explains how to handle employee advances in Total Office Manager.

To setup an employee advance we recommend the following:

  1. Create an asset account to track the advance.
    1. Banking | Chart of Accounts
    2. Right-Click and choose “New Account”
    3. Type: Other Current Asset
    4. Name: Employee Advance (optional)
    5. Enter other fields as needed
    6. Click OK to save.
  1. Create a payroll item of the type “addition” called Employee Advance
    1. Employees | Lists | Payroll Item List
    2. Right click and choose “New Payroll Addition Item”
    3. ID:  Employee Advance (optional)
    4. Description:  Enter your description
    5. Account ID: Enter the asset account made for employee Advance
    6. Enter Calculation Type  
    7. Tax Tracking:  Set to None
    8. Enter other fields as needed.
    9. Click OK to save.
    1. Employees | Employee List
    2. Right click on the employee you want setup and choose  “Employee Payroll Items“
    3. Click Additions Tab
    4. Choose Advance Item
    5. Setup Amount
    6. Click Exit to save and close.Use this addition on the employee’s paycheck for the amount of the Advance.
  • Note: If you only want to use this item on the employee for a one-time transaction, you will need to inactivate the item after use, otherwise it will show up on the paycheck each time you do payroll.

To Deduct Repayment of the Advance from the employee’s paycheck do the following:

  1. Create a deduction payroll item for the repayment.
    1. Employees | Lists | Payroll Items List
    2. Right-click and choose “New Payroll Deduction Item”
    3. ID: Reimbursement for Employee Advance (optinal)
    4. Account ID: Use the Asset account for Employee Advance.
    5. Deduct From: Net Pay
    6. Fill in all other fields as needed.
    7. Click OK to save.

 

  1. Enter this deduction on the employees payroll setup.
    1. Employee | Employee List
    2. Right click on the employee you want setup and choose  “Employee Payroll Items“
    3. Click Deductions Tab.
    4. Choose: Reimbursement for Employee Advance
    5. Setup Amount
    6. Click Exit to save and close.
  2. Run payroll.
  • Note: If you no longer want this item deducted from the employee’s paycheck you will need to inactivate the item in the employee’s payroll information.

Related Content

Payroll – Addition Items

Payroll – Deduction Items

Payroll – Earning Items

Payrolls – Processing Paychecks