Payroll Disbursement – Salary Advances

Objective 

Salary advances are to be discouraged. They are not to be confused with employee loans.  Advances are only permitted in exceptional situations. The General Manager will be required to rule as to whether the situation is exceptional. Examples of exceptional situations are: proven hardship, family bereavement, family illness etc.

Procedure 

1. The term “payroll advance” means the payment of wages already earned by the employee and being paid before the regularly scheduled payday.

2. Payroll advances DOES NOT mean a payment made in advance against future earnings; such payments are loans.

3. Reasons for advances include:

1. Payments for payroll calculation errors which cannot be corrected until the following pay period.

2. Disbursement of earned pay before the employee leaves on a trip, etc.

3. Disbursement of earned pay for a family emergency (proven hardship, family bereavement, family illness etc.)

4. Payment of all amounts due a terminated employee when the employee will not appear on the scheduled payday.

5. Similar payments authorized and approved by the General Manager.

4. All employee salary and wage advances as defined above must be effected as follows:

Paying by Cash 

The employee will be paid by petty cash disbursement charged to the payroll advances account and deducted form the net amount due the employee on the following payday.