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TomD's avatar
TomD
Trusted Cover User
10 months ago

Advance Payment

I am considering how to assist a staff member with some cashflow problems and wonder what the process would be for paying wages in advance or providing a cash advance via the payroll system. Would I need to enter additional hours or just enter a $ amount. I am concerned with STP reporting, it would become quite messy and likely incorrect.  The idea is for the employee to get some money upfront to be repaid later from his wages. 

Alternatively I would consider giving him the money privately and for the employee to repay me back privately. 

 

Any comments on either path?

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  • Genreve_S's avatar
    Genreve_S
    MYOB Moderator
    9 months ago

    Hi TomD, 

     

    Thanks for reaching out. 

     

    Apologies for the delayed response. Doing advance payment for employees are not uncommon, most business has this. We would need to create an asset account and a pay category for this and link it to the employee. Here is a helpful article Wage advances and employee loans. This will outline the complete steps in doing the employee's advance wage. 

     

    Let us know if you encounter any issues or have any questions regarding this. We're happy to help further. 

     

    Cheers, 

    Genreve