Payroll Advance

A payroll advance is money an employer provides to an employee before the employee’s normal payday, usually with an agreement for repayment through future payroll or another method.

Payroll advances can help employees access wages or funds early, but employers need a clear policy for eligibility, repayment, deductions, and what happens if employment ends before the advance is repaid. Wage deduction and lending rules can vary by state, so employers should confirm that any repayment arrangement is permitted before deducting money from a paycheck.