Description

You want to pay advances to your employees and be able to retrieve the advance through subsequent payrolls. 

Prerequisites

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• Have created the respective payroll categories (more information provided below)

Solution

There are Ensure that Harmony contains two (2) ways that you can process and recover advanced pays in Harmony.

1. Using the predefined/default payroll categories that Harmony provides for you out of the box - 107 (

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1. "Salary Advance", an earnings payroll category) and

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1. 108 (

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1. "Salary Advance

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1. Recovery, a

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1. negative earnings payroll category). 107 will be used to pay the advanced payment.

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1. 108 will be used to recover the advanced payment

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1. in the same pay period. 
2. Creating two (2) new payroll categories (an earning and a deduction). The earning will be used to pay the advanced payment. The deduction will be used to recover the advanced payment in an upcoming pay period manually. You may create a temporary deduction to automatically recover a flat value every pay period for a number of pay periods, if needed. Refer to the Temporary or Variable Payroll Categories article for more information. 

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If you would like to process an advanced pay, please perform the first pay run.

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Processing Advanced Pays

1. Navigate to Payroll > Processing > Payroll Wizard. 
2. Select the appropriate payroll group in the "Payroll Group" field. 
3. Select the pay period applicable to your advance pay in the "Payroll Process Period" field.
4. Define the "Paycard Type" and "Payment Date" fields as appropriate. 
5. In the bottom half of the page is a list of all payroll categories. Ensure that the 107 payroll category (“Salary Advance”) is selected and the 401 payroll category (“Salary Advance Recovery”) is unselectedyour advance (earning) payroll category to pay the advanced payment is selected. You do not need to select the recovery payroll category.
6. Click the save button and click the "Complete" button to complete this step of the payroll wizard. 
7. Click the arrow on the right side of the page to navigate Move to the next step, Timesheets, in the payroll process. 
8. Add in the appropriate employee of whom you’d like to process an advanced pay for. Click the “+” button on the right side of the employee’s row and select “107” from the dropdown field to add it to the employee’s pay. 
9. Enter the timesheets as normal, if required. Click the "Complete" button and move onto the next step. 
10. Process the paycards as normal. 
11. For the employee who is receiving the advanced pay, select their paycard and click the "Edit" button. Enter the appropriate amount for the 107 earnings payroll category. 
12. Click "Process" to save your changes to the edited paycard. 
13. Click the save button and continue through the payroll process as normal. 

Note: Remember to post your payroll to ensure that you’ve processed the advanced pay!

Recovering Advanced Pays

Note: If you are using a temporary deduction, you must select the correct pay period(s) of which the deduction will apply to in the employee's master paycard. 

1. Navigate to Payroll > Processing > Payroll Wizard. 
2. Select the appropriate payroll group in the "Payroll Group" field. 
3. Select the pay period applicable to your advance pay recovery in the "Payroll Process Period" field.
   1. Note: If you are using the predefined/default 107 and 108 payroll categories to process and recover advanced pays, select the same pay period. If you are not using these default categories, you may select the next pay period. 
4. Define the "Paycard Type" and "Payment Date" fields as appropriate. 
5. In the bottom half of the page is a list of all payroll categories. Ensure that the 107 your recovery payroll category (“Salary Advance”) is unselected and the 401 payroll category (“Salary Advance Recovery”) is selected.
6. Click the save button and continue through the payroll process as normal.
   1. Note: If you are using the predefined/default 108 payroll category to recover the advanced pay, Harmony will automatically calculate the amount that was previously received and deduct from the net pay of the employee.
    
   1. If you are not using this default category, you must manually enter the amount into your deduction payroll category.

Note: Remember to post your payroll to ensure that you’ve recovered the advanced pay!