How do I give advances to employees, and then get repaid?

In most tax districts, you need to base deductions on the actual amount worked in each payroll period, and then handle advances after that is calculated.

That means that you'll run payroll just like you normally do, and then enter the advance (and repayment) as a "side" transaction. It's pretty much as if you have loaned some money to your employee!

Giving Advances

To enter an advance that you give to an employee, follow these steps:

1. Choose Payroll Records from the Costs menu.
2. Click the New button.
3. Enter the Employee into the Employee field.
4. Enter Advance into the Transaction Type field.
5. Enter the amount in the Amount field.
6. Hit the Enter key to save the record.

Paying the Advance

If you add the advance to a regular payroll check, follow these steps:

1. Use the Write Payroll command do figure payroll just like you normally do.
2. Click the Write Payroll button to write paychecks.
3. Goldenseal will automatically include any extra Payroll Records in the check.
4. If you do not want to include an extra item in this paycheck, turn off the checkbox next to it, in the Checking Transaction.

If you write a separate check for an advance, follow these steps:

1. Choose Checking Transactions from the Bank menu, and choose an account from the submenu.
2. Click the New button.
3. Enter Employee into the Pay To popup field.
4. Enter a specific employee into the Account field.
5. Enter Payroll into the Transaction Paid popup field.
6. Enter the payroll record you created in the previous step into the Reference field.
7. Hit the Enter key to save the record.

If you give the advance as a cash payment, follow these steps:

1. Choose Cash Transactions from the Bank menu, and choose an account from the submenu.
2. Click the New button.
3. Enter Employee into the Pay To popup field.
4. Enter a specific employee into the Account field.
5. Enter Payroll into the Transaction Paid popup field.
6. Enter the payroll record you created in the previous step into the Reference field.
7. Hit the Enter key to save the record.

Viewing Advances History

To see a report of all advances made to employees, follow these steps:

1. Choose Payroll from the Reports menu, and choose Payroll Records from the submenu.
2. Click the More Details checkbox.
3. Click on the Match Field popup, and choose Conditions.
4. Enter Advance into the clairvoyant field next to the Match Field popup.
5. Click the Update button.

To see a report of all advance repayments, follow these steps:

1. Choose Payroll from the Reports menu, and choose Payroll Records from the submenu.
2. Click the More Details checkbox.
3. Click on the Match Field popup, and choose Conditions.
4. Enter Repay Advance into the clairvoyant field next to the Match Field popup.
5. Click the Update button.

To see a summary of the current amount of advances owed by each employee, follow these steps:

1. Choose Payroll from the Reports menu, and choose Employee Info from the submenu.
2. Click the Update button.

NOTE-- The Employee Info report is new in Goldenseal 3.6. If you have an earlier version of Goldenseal payroll software, it will not be available.

Goldenseal construction payroll software also keeps track of advances owed in each Employee account-- to see it, check the Advances Owed field in the Employee account records.

Advance Repayments

1. Choose Payroll Records from the Costs menu.
2. Click the New button.
3. Enter the Employee into the Employee field.
4. Enter Repay Advance into the Transaction Type field.
5. Enter the amount in the Amount field.

If you subtract the advance from a regular payroll check, follow these steps:

1. Use the Write Payroll command do figure payroll just like you normally do.
2. Click the Write Payroll button to write paychecks, but leave the bank account field blank.
3. If you haven't already done so, enter a Payroll Record for the advance repayment.
4. Choose Checking Transactions from the Bank menu, and choose an account from the submenu.
5. Click the New button.
6. Enter Employee into the Pay To popup field.
7. Enter a specific employee into the Account field.
8. Enter Payroll into the Breakdown field on the left side of the window.
9. Goldenseal will fill in all unpaid Payroll Records for the employee (including regular payroll and the advance repayment).
10. Hit the Enter key to save the record.

If the employee gives you a check or cash to repay the advance, follow these steps:

1. Choose Checking Transactions from the Bank menu, and choose an account from the submenu.
2. Click the New button.
3. Enter Deposit into the Type popup field at the top of the window.
4. Enter Employee into the Received From popup field.
5. Enter a specific employee into the Account field.
6. Enter Payroll Refund into the Transaction Paid popup field.
7. Enter the payroll record you created in the previous step into the Reference field.
8. Hit the Enter key to save the record.

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Click here for general information about Goldenseal payroll software .

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