Give loans and salary advances

An advance is money a person receives before payday. A loan is an advance with a repayment plan: payroll takes an instalment from each run until it is paid back.

Before you start

• You need Salaries and payroll and the Payroll app.

Record a loan

1. Open HR → Payroll → Loans.
2. Under New loan, pick the person in Name.
3. Type the Amount of a new loan paid by bank, or pick an existing advance in On an advance already given to put a plan on it.
4. Type the Instalment per run and the First period.
5. Add Notes if you like, and select New loan.

Change or close a loan

• Select Pause to skip instalments for a while, and Resume to start again.
• Change the instalment in the loan's row and save it.
• If the person pays the rest back themselves, select Settled outside payroll. The repayment is recorded and the loan closes.

Advances asked for by staff

1. A person asks for an Advance from their own HR page.
2. You approve it in the approvals inbox. Money requests are decided one by one.
3. The advance is recorded as owed. On the person's file, under Advances still owed, type how much each payroll takes back in Per payroll. Leave it empty and payroll follows your rule for advances without a plan: back in full in the next run, or not at all. See Choose your payroll rules.

Good to know

• Each loan shows its Schedule: the instalments month by month and what is left after each one.
• Payroll never takes more than the law allows. Egypt: all such deductions together up to 25 % of the wage, a loan instalment up to 10 %. UAE: up to 50 % of the wage in all. These are published figures to confirm with your accountant. You can set your own caps; the rest stays owed and a warning on the run says so.
• Loans give way first, then advances. Insurance, tax and unpaid days are never cut.
• Payroll never takes more than the person owes, and never takes the net pay below zero.
• The person sees their loans, the schedule and what they owe in all on their own HR page.
• When someone leaves, what they still owe is a line on the final settlement. See Settle a leaver's final pay.
• Advances and repayments are kept in the person's staff ledger, which you can open from Staff.