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Actually he does. I run payroll. When someone wants an advance, they get amount they are asking for, but I do deduct taxes. The following week they get their salary minus what I paid them in their advance.
Thats not borrowing. They are getting money they worked for.
It certainly is borrowing if the advance is more than the pro rata portion of the pay for the hours so far worked in that pay period, because at least some of the advance corresponds to hours not yet worked, and hence wages not yet earned.
All this argument about borrowing / not borrowing from pay as advance is just semantics. You get the same money at the end of the day, just a bit of it earlier. How you want to word it and categorize it is different in different people's minds.
One group will argue that there is no payback and long term interest on the money and hence the person does not go into a money-hole. Others will argue that at the end of the day there is not extra cash to buy more and it is the same as hiding some money under the pillow and taking out 2 weeks later, in that your total income / bank balance has not gone up.
Actually he does. I run payroll. When someone wants an advance, they get amount they are asking for, but I do deduct taxes. The following week they get their salary minus what I paid them in their advance.
Thats not borrowing. They are getting money they worked for.
I run lots of payroll, too. And we don't do it that way. And some employees pay back their advances over multiple paychecks.
This whole argument is silly. An employer is not required to give any advances. DR acknowledged this. That is why the employee must ask.
But I suppose any sort of mental gymnastics required is A-OK so long as one can keep their All-Knowing Guru up on His pedestal.
Don't worry bro you have no idea of what you are talking about
A advance is still payroll. But with a screen name like yours I sort of expect you not having a idea
That's funny. Because when I OWNED my own company and had to do payroll I had employees asking for advances. I used to just do it cash and then give a note to the payroll lady. But after she blew a gasket and told me "You can't do that" I learned otherwise. A advance on your payroll gets taxes taken out. It's not a loan, it's a advance on payroll.
A advance is still payroll. But with a screen name like yours I sort of expect you not having a idea
That's funny. Because when I OWNED my own company and had to do payroll I had employees asking for advances. I used to just do it cash and then give a note to the payroll lady. But after she blew a gasket and told me "You can't do that" I learned otherwise. A advance on your payroll gets taxes taken out. It's not a loan, it's a advance on payroll.
It doesn't really matter how you processed or handled it. I will leaves this here, it clearly explains it
Actually he does. I run payroll. When someone wants an advance, they get amount they are asking for, but I do deduct taxes. The following week they get their salary minus what I paid them in their advance.
Thats not borrowing. They are getting money they worked for.
Quote:
Originally Posted by carnivalday
You didnt pay it back. You simply got paid up front for your work.
I've never done payroll myself, by my fathers construction company does advances often with their employees, and this is exactly how he does it. An advance is simply deducted from a future paycheck. The only thing that changes is the date on the paycheck.
When my dad first started he would give cash to his employees and then they would pay him back, which isn't an advance, or they would ask him to just deduct the hours from their pay, but his accountant got mad at him for doing that, and said it's not legal.
Yes, most of the callers who celebrate getting out of debt are making very large incomes. Rarely do you hear about someone in huge debt who paid it off on a salary of $30k.
That is only one type of advance, or perhaps advance isn't the right word for the two types of situations.
In our company an advance is only up to the amount that you have already earned, you are only skipping the normal processing and wait times. If I get a cash payout advance along with my regular check on friday afternoon and decide to call in and quit monday morning there is no money I need to pay back, so it's not a 'loan' in that sense.
Yes, most of the callers who celebrate getting out of debt are making very large incomes. Rarely do you hear about someone in huge debt who paid it off on a salary of $30k.
I have heard many lower income people call in about being debt free. With that said, some callers were previously on the lower end of income and then took on second jobs to accelerate debt pay off.
Yes, most of the callers who celebrate getting out of debt are making very large incomes. Rarely do you hear about someone in huge debt who paid it off on a salary of $30k.
I guess that depends on what you consider large incomes. I hear many people calling in with HH incomes between $60-$100k. I'm not sure I would consider that a large income.
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