Payroll Advance Form

nohr4u1yr

Good morning!!

Does anyone have a payroll advance form, as well as a policy they you would be willing to share? If so, can you please email it to me at [email]snewman@lighthousecredit.org[/email]

Thank you! I hope you have a great day!

Shelley

ritaanz

Would this be a form to get an advance on the next paycheck?

nohr4u1yr

Ritaanz, yes it would be an advance on the next paycheck.

ritaanz

The only payroll advance we allow is for the purchase of tools (that are required on the job) valued at $50 or more. The tool is repaid through payroll deductions within 3 months.

If you are considering payroll advances for employees who need an advance because they are cash short, you may be creating a monster. Way back, in my past life, I worked for a company that allowed advances for "emergencies". You would be amazed at how creative your employees can get.

LivindonSouth

Is there an irony that your email address indicates you work for Lighthouse Credit and you are advancing credit to employees? Or am I off the mark. If my assumption is correct, I would also assume that you guys see hundreds of people who are in credit binds and borrowing for bad reasons.



"Life is a tragedy when seen in close-up, but a comedy in long-shot."
Charlie Chaplin

marc

Here is what I do:

Employee Advance and Authorization to deduct from paycheck.

I, (emmployee name), acknowledge receiving an advance of $xxx.00 from (the company). I hereby authorize (the company) to automatically deduct $XXX.00 per paycheck until the amount is paid in full. This automatic deduction will begin with the paycheck dated mm dd, 2005. In the event my employment terminates for any reason, any unpaid balance will be deducted from my final check.


_____________________________________ ________________________

Employee Signature Date

We do not encourage these advances and I have the authority to approve them. My rules are:

1. The EE must be in good standing.
2. The advance will not exceed $500.
3. Repayment schedule is flexible, but I like it back right away. Usually just one or two pay periods.
4. Since paychecks are issued 7 days after the close of the pay period, I rarely approve an advance when the EE has not already earned enough money since the last paycheck to repay the company should they quit or get fired.
5. I also want a reason. I will not approve if it is something I consider frivolous, in my sole and arbitrary discretion. If it is frivolous, they can wait till payday or borrow from someone else.

ritaanz

This is a test.

1. Is a box of condoms frivolous?
2. Is a box of sanitary napkins frivolous?
3. Bail money?
4. A loan for bus tickets?
5. $50 for a tank of gas?

This can go on and on and on....

marc

That is why I get to use my discretion. If it is a normal monthly living need - that is ordinarily handled in an ongoing budget - then something must have happened to throw that budget out of whack - like an unexpected car repair.

I would listen to something like that.

If a significant other just lost their job and the rent was going to come out of that paycheck, I would probably make that advance.

I will also limit the number and frequency of advances, at my discretion. We are not a credit union, nor a line of credit.

The pay day loan company's out here are notorious for their high fees and interest rates. We try to help our EEs out when we can - to keep them out of this vicious cycle.

We cannot fix everything.

ritaanz

M: Those are the easy ones. As employees see which way you sway, that's when the creativity comes into play.

I take it you would not approve a cash advance for the bail money. x;-)

marc

Well, maybe to get the payroll clerk out in time to get us all paid!x0:)

nohr4u1yr

Mark, thank you for your input. That is what I was looking for.

Don, Our company doesn't loan money, but what IS scary is that we are a debt management company! We help people budget their money... I know...it's scary...