Payroll Advances
Frequently Asked Questions
Payroll Advance Example:
June Payroll Advance Issued by Accounts Payable
Opus T. Penguin, a monthly employee, worked but did not get paid for the June 30 pay date. An advance was requested for him in the amount of $10,166.67 which is his monthly rate. Opus will receive a payroll advance issued by Accounts Payable equal to 70% of his monthly rate calculated as follows:70% *$10,166.67=$7,116
Opus will receive a check from Accounts Payable for $7,116.
Actual July Pay check Including June Retroactive Pay and Deduction of Advance Issued by Accounts Payable
Opus’s paycheck for the July 30 pay will be as follows:
Regular Pay-July’s Pay 10,166.67
Retro Pay-June’s Pay 10,166.67
Gross Pay 20,333.34
Deductions:
Taxes:
Federal-Calculated
According to W-4 (5,105.17)
Social Security-6.2% (1,240.84)
Medicare-1.45% (290.20)
PA State-3.07% (618.66)
Local-3.00% (604.56)
PA SUI-.08% (16.27)
Other:
Health (78.00)*
Vision (3.00)*
Dental (79.50)*
Prescription (21.00)*
Pretax Parking (144.00)
Loc Svc Tax (4.35)
Advance (7,116.00)
Total Net Pay: $5,011.81
*Represents 2 months (June and July) worth of benefit deductions.
I worked but did not get paid. Is there a way to receive money before next pay date?
If you performed services but did not receive a paycheck due to an administrative error, you can request a payroll advance.
How do I get an advance?
You should contact your department business manager or administrator who can initiate the process.
Can I request a payroll advance for work not yet performed in order to pay unexpected expenses?
No, payroll advances can only be issued for work already performed but not paid due to an administrative error.
How much will I receive?
70% of the requested gross amount.
Why do I only get 70% of my estimated gross pay?
To allow for the taxes and deductions that will come out of your next pay.
Will the advance be an actual pay check?
No, it will be issued by Accounts Payable.
What about my deductions that should have been taken out of the missed pay?
Some payroll deductions go into arrears and will be taken out of your next paycheck. Others will not go into arrears and you will need to arrange a direct payment. The deductions that go into arrears are:
|
|
|
|
|
|
What about my supplemental retirement contributions?
Supplemental retirement contributions do not go into arrears and will not be double deducted from your next pay. You should use HR connections to adjust your contributions to maximize your annual contribution amount.
What are the steps in the advance process?
After employee requests an advance, department administrator fills out request form and sends it to Payroll Services. Payroll administrators calculate the amount of the advance, obtain approval of the Controller and then request Accounts Payable to issue the check.
How long will I wait until advance is ready?
Issuing the advance is a multi-step process and might take several days.
How will I receive my advance?
The advance check is a physical check that is available for pick up at the front desk UTDC Building, 4516 Henry Street. You will receive a call from the front desk receptionist once the advance is ready.
Front Desk hours are 8:30 am to 5:00 pm, Monday –Friday.
What is the impact on my next paycheck?
The earnings for the missed pay period will be processed along with your earnings for the current pay period. This may result in higher taxes, as the combined amount might put you in a higher tax bracket. The amount that was advanced to you will be deducted out of that pay.