published | 12/14/2010

Daycare Tracking Employees and Staffing

Employee needs a short-term loan for an unexpected expense

In this article, we’ll explain how to issue a payroll advance using Daycare Payroll Software from Procare, and how to automatically deduct the amount from a future paycheck to repay the loan. You may also choose to phase in the repayment over several checks as needed.

How does it work?

You’ll use the built-in Payroll Advance feature to issue the check for the loan amount. Just go to the Payroll Check Calculation screen, click the Advance tab, then enter the amount in the Current Advance box.

Procare Software: Payroll Advance Example

Click the Summary tab where you can enter a comment for that check, then print and record it. You will not include taxes or any other withholdings because this isn’t a paycheck, just short-term loan.

Procare Software: Summary Example

How does the loan get repaid?

When you issue the next paycheck Procare will automatically deduct the amount due. If you’d like to change the amount, perhaps because the net pay is less than the amount owed, click the Withholdings tab to change the Advance Repayment amount at the bottom of that screen.

Procare Software: Withholding Example

Click the Summary tab to see the final paycheck. You also might add an appropriate comment, then record the paycheck.

Procare Software: Current Advance Example

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