Sometimes, an employee might hit a financial rough patch. Something unexpected might happen, such as a medical emergency, that requires more money than the employee has saved up.
If this happens, the employee might ask you for a salary advance to help them make ends meet.
A salary advance is essentially a loan you can give an employee. The advance comes from wages you will pay the employee in the future.
Deskera People has recently rolled out a salary advance feature where you can do an advance payment to your employee for a specific month.
Here are the steps below, you can do it using Deskera People.
Let's get started,
- To issue a salary advance to an employee, you need to go to employees profile>>Components>> enable Advance Salary toggle button.
2. After you enable the Salary Advance toggle button, you need to fill in the below fields,
- Salary Advance Amount - Fill in the salary advance amount, which shall not be greater than the employee's basic pay.
- Disbursement Date - Select the date in which advance must be given.
- Repayment Start Date - Select the date when the repayment starts
- Installment Amount - Enter the amount of each installment the employee will pay
- After these details are filled, you can see the total number of installments to be paid by the employee.
3. Click on the save button , where the Advance Salary will be added to the basic pay of the employee, which you can see under the Employee Compensation Summary.
4. You can view the salary advance amount in the system, while processing the payrun.
5. The Salary Advance amount will be visible under the Additional Earnings column.
6. Once the salary advance is paid, then from the employees salary every month, as per the set Repayment Start Date and Installment Amount, the installment of Salary Advance will be deducted.
7. This, amount will get reflected while processing the payrun, under the deduction column, as Advance Repayment deduction component.
8. After each installment is paid by the employee, under the employee profile, component section, the remaining installments number to be paid will be updated accordingly.
9. The employee can view the salary advance fields and, incase needs to change the installment amount, he/she can edit the installment amount if they require it.
10. The changed installment amount the employee has make it, will be valid from their next payrun.
We hope this article was useful to you all, and learned how to make advance payment using Deskera People.