PY - Managing Salary Advance Process

Institutions may offer new Faculty/Academic Staff/Limited Appointment (FA/AS/LI) (unclassified) employees a salary advance to cover living expenses during the first month of employment. Advances up to 35% of one month's gross pay may be granted. A repayment agreement must be signed by the employee prior to the advance being made. Salary advances are to be repaid in full via payroll deduction from the employee's first regular payroll check.

Procedure At-a-Glance

Category: Payroll
Audience: Payroll Coordinators
Overarching Process: PY-7.03 Managing Adjustments - Salary Advance
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General Description

If an employee is facing financial hardship they may have the opportunity to request a salary advance. Only newly hired FA/AS/LI (unclassified) employees, who have not received a paycheck, are eligible for a salary advance. To request a salary advance an employee will complete a Salary Advance Request and Payroll Deduction Form. Once you receive this form, you have the ability to approve or deny the request according to the requirements previously mentioned. If the request is approved the next step is to calculate the amount the employee will be advanced. An employee can only receive a maximum of 35% of one month's gross pay. Normal taxes will be deducted from this payment. The Salary Advance Request and Payroll Deduction Form should be kept in the department/division office. The Service Center will process the request and generate a check in the next available off-cycle pay period.

You then must set up an entry in Additional Pay to recoup the advance from the first paycheck, using the same earnings code "USA." The Additional Pay earnings amount should be entered as a negative amount of the advance. The goal amount must be be set to equal the earnings amount to ensure the amount is only taken once. Since all of the employees you will be processing will be FA/AS/LI  (unclassified) employees the additional pay will always only apply to the first pay period.

Process Inputs

  • Salary Advance Request and Payroll Deduction Form

Process Outputs

  • Off-Cyle Check

Procedure Steps - Fall Semester Start-up ONLY

During August, before the start of the Academic Year, communications will be sent out with instructions for requesting a salary advance. There are different forms to complete at this time of year due to the number of requests.

Procedure Steps - Rest of the Year

Please follow these steps to perform this procedure:

  1. An employee will submit a Salary Advance Request and Payroll Deduction Form. This form should be kept in the department/division office.
  2. The request can be approved or denied. Use the Job Data page to see if the employee meets the requirements.
    • Approve if a new FA/AS/LI (unclassified) employee.
    • Deny if an University Staff (classified) employee or have already been issued at least one paycheck.
  3. Calculate the amount that the employee will receive in the advance. An employee can receive a maximum of 35% of one month's gross pay.
  4. Submit a Missed Payroll Request for the calculated amount.
    • The check will be generated on the next off-cycle date.

    Setting up the repayment

    1. Set-up an Additional Pay entry to recoup the advance amount
    2. Navigate to Payroll for North America > Employee Pay Data USA > Create Additional Pay


    3. Enter Earnings Code: USA


    4. Enter the negative of the advance amount into the Earnings box. Enter the same amount as the Goal Amount. This will make sure the amount is only deducted one time.
    5. Since the employee is FA/AS/LI (unclassified) it will only apply to the First pay period.
    6. Additional Sequence Number should be set to 1 if first entry; otherwise should be one greater than the previous entry.
    7. Make sure the Ok to Pay box is checked.


    8. Click Save.
    9. The page will save. The Additional Pay entered will now be deducted from the next payroll check.

    Once the Additional Pay has been set up for the employee's repayment of the advance, the payroll coordinator should verify the repayment on the next on cycle payroll process. The validation can be done by checking the Payroll Edit report or Review Paycheck after any Preliminary Pay Calculation done during the next on cycle payroll process.

    Related Policies

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    Related Jobaids

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    Keywords:additional pay   Doc ID:19092
    Owner:Kate I.Group:Human Resource System (HRS)
    Created:2011-07-11 19:00 CDTUpdated:2016-06-24 09:39 CDT
    Sites:Human Resource System (HRS)
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