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wages in advance


A staff member has been given wages in advance on their pay. Their wages are being reduced by $50.00 per week for ten weeks to compensate?

  1. Should it be shown in FLexitime as a lumpsum payment?
  2. How will it affect the PAYE calculations? should anything be recorded differently?

Thanks for your help.

Kind regards

Christina Vellasamy

Christina Vellasamy Answered

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The easiest way of handling this is to treat it as a loan to the employee, not wages.

This way the $500 can be added to the pay as a non-taxable allowance and as the employee pays back the money it is treated as a post-tax deduction from their pay. By doing this there are no tax implications.

Robert Owen 0 votes
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