Account for an advance to an employee

Set up a deduction pay item to account for a one-off advance paid to an employee. Add the deduction to the employee’s payslip in a future pay run.

Create a deduction pay item for the advance

  1. In the Settings menu, select Payroll Settings.
  2. Click the Pay Items tab.
  3. Click Deductions.
  4. Click Add, and select Other.
  5. Enter the pay item's name.
  6. Click Fixed Amount.
  7. Enter the Standard Amount, and select an account.
  8. If this is a net pay deduction, don't select the checkboxes for:
    • Deduct before PAYE tax
    • Deduct before National Insurance contributions
    • Reduces Pensionable Earnings
  9. Click Add.

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