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.
- 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.
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
- The Service Center will process the request and generate an off-cycle check.
- Service Center will set up an entry in Additional Pay to recoup the advance from the first paycheck and will be entered as a negative amount of the advance.
Please follow these steps to perform this procedure:
- An employee will submit a Salary Advance Request and Payroll Deduction Form. This form should be kept in the department/division office.
- 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.
- 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.
- Submit a Special Payroll Salary Advance Request web form.
- The check will be generated off-cycle and will be distributed per usual off-cycle check process.
- The Service Center will set up an entry in Additional Pay to recoup the advance.
NOTE: 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.See KB PY - Review an Employee's Paycheck
- PY - Enter Additional Pay
- PY - Review an Employee's Paycheck
- PY - Review Edit Report Delivered via Cypress