What is an Advanced Payment?
Occasionally, the employee is given cash in advance of the usual pay period. When it comes to issuing the payslip, since a portion has been paid in advance, this needs to be deducted from the employee's Take-Home Pay. However, the income still needs to be taken into account for tax calculations.
Hence, an adjustment can be passed off as a post-tax adjustment.
Add an Advance Payment Allowance
Firstly you will need to add the Custom Allowance in the System. It is important to add the Advance Payment Allowance in the settings as below, with types Deduction and taxable status and Taxable disabled.
Add the Allowance in Payslip
Once the custom Advanced Payment Allowance has been created, you will need to enter this Allowance in the Payslip as a One-Time allowance.
This will show in the payslip as a Post-Tax adjustment, with its value being deducted from the take-home pay, as can be seen below: