Payroll advances?

[Ralph Mathews]

Can payroll advances be entered?

[Paul Mayer]

You would need to set up a deduction to take it back if you give advances. Unless you want to run it as a separate payroll and take the taxes out and all when paying the advance and NOT pay the person whan payday comes.

[Sherri]

Back in June I had an employee that got an advance, when the next payroll was done I set up a deduction for the $800.00 and paid him the balance. Now I am doing my 941's and the total social security and medicare is minus the $800.00?????

[Paul Mayer]

Back in June I had an employee that got an advance, when the next payroll was done I set up a deduction for the $800.00 and paid him the balance. Now I am doing my 941's and the total social security and medicare is minus the $800.00?????

The problem (not a problem if the deduction is non-taxable) is that you check the 941 Box which subtracts the deduction from the items checked on the same line when setting up a non-taxable deduction. I'm betting that should not have been a non-taxable deduction either since you gave them an advance and they must pay taxes on the advance. The error is that deduction should not have been setup as non-taxable.

See the instructions in the help file:

http://zpay.com/pw-online-help/module_9_3.htm?MenuState=AcOXw5VVXXXDlcOdVVd1XVfDl--0jVXvtIRVAcOnAAFHAQ==

Items 6, 7, 8 and 9 are for non-taxable deductions only.

[Sherri]

Thanks, I got that fixed. But the wages on my 941 form shows an amount minus the $800.00 and the Insurance deductions??

[Sherri]

another question the wage amount on the 941 is still deducting the $800.00 and the Insurance amount????

[Paul Mayer]

You still have the 941 box checked in the Deduction settings. As long as that 941 box is checked it deducts that from the wages since ONLY taxable wages are displayed in that item on the 941 and on the W2 Forms.