Payroll Advances


how to handle advances or owner draws with MacNail construction payroll software


situation: employee at hourly wage (hrs entered in llog) takes out an advance in the middle of the month (e.g. $400). So a $400 check is put into the ledger. Later when they do payroll they subtract the $400 from his net pay. E.g. if the net pay was $2000, they subtract $400 to make it $1600- but the pay for the whole month adds up to $2000


Best way to handle this: When the check for $400 is written in ledger, give it no job name, and type "L", with the appropriate code for that employee. Then at end of month when payroll chk is written, do the payroll report for the full amount ($2000), and post that payrl to the ledger- a check will be created for $2000. They can adjust that downwards by the amount of the draw. Finally, when they update pay files with that report, the pay file will register $2000 having been paid for that month, which will square with the ledger.


Entered 1/26/94 by Vinay. Updated 11/22/2010.