Converting payroll to new schedule-need employee advance

Yes, you can advance each employee the estimated amount of their "net" paycheck. I always just write a check and post it to a general ledger liability account titled "employee advances". Then when you actually create the paycheck, you will enter an item deduction for the amount you advanced them. If you made an error and advanced too much, you might have to deduct over more than one payroll week.

Kathy Iman

The methodology in the previous post is correct but I would not do the advance for the estimated net or you are defeating the purpose of the advance. The advance is to get the employees over the hurdle of transitioning from being paid to date and a week delay and getting on the new schedule.

Pay back the advance over a period of several weeks so the EE still has money.