Overview
An advance is normally a payment where:
- an error in payroll processing resulted in no payment, or a substantial reduction, and
- the required correction cannot wait until the next payday
If this happens, we will make an advance payment to the employee as soon as we can.
Requests for an advance to help an individual manage their personal finances are not covered by this process. Individuals should search for 'financial wellbeing' on our intranet. For school colleagues, guidance on financial wellbeing can be found on the Lincs2Learn dashboard. This is accessible by the school's headteacher and, or school business manager.
We will not pay an advance where:
- an employee fails to meet submission deadlines for variable payments such as expenses, additional hours, or mileage.
- the manager or headteacher does not authorise an employee's variable payments on time. Payroll cut off dates are diarised to avoid this from happening. A substitute must be set up on Business World (BW) to provide cover. Guidance can be found on Fresh Service.
- forms have been incorrectly completed or submitted after the deadline. This includes forms to extend temporary arrangements such as honoraria payments and secondments.
- starter paperwork has been submitted for individuals who have not completed the necessary pre-employment checks.
- a new employee to the council starts in-post between the 15th and end of a month. They will receive their salary on the 23rd of the following month. Although the individual will have been set up on BW, this will reduce the risk of:
- overpayment
- debt write-off if the individual does not commence employment with us
Details of payroll and HR admin deadlines are on our intranet and, or published direct with schools as necessary. Schools can also find a copy of the deadlines on the Lincs2Learn dashboard.
Roles and responsibilities
There are administrative costs involved in processing advances. It is therefore expected that requests will be kept to a minimum.
The stakeholders involved in processing an advance payment are as follows:
- an employee submits a request to their line manager for an advance to be made
- the line manager completes the 'advance payment request form'
- head of service or headteacher considers the request
- HR admin and payroll teams (LCC) administer and calculate the advance payment on our behalf
- treasury officers and senior finance officers arrange and authorise the bank payments
Process
There is no entitlement to an advance of salary. We will consider all requests based on their own merits.
If an individual has received no, or a substantial reduction in their basic pay, we will make a payment unless:
- they are a new starter to the council, and
- started in post after the 15th of the month
We will then make a payment the following month.
Where an advance has been requested, the line manager must:
- complete and submit the 'advance payment request form' to payroll via email. The subject header must state ‘advance request’
- seeks authorisation from their head of service or headteacher.
To allow for tax, national insurance and pension deductions, the payroll team will calculate the payment to be made based on:
- 60% of the gross amount for those who are in a pension scheme
- 65% of the gross amount for those who are not in the pension scheme
This is because HMRC often changes tax codes, and we cannot predict this. The formula is therefore applied to prevent any potential overpayment going forward.
We would then pay an advance in the next available run.
Advance payments are usually visible in the employee's bank account by 6pm the day following approval.
In the next pay period, we will offset advance payments against (deducted from) the employee's net pay. This is to ensure payment is not made twice.
Monitoring of advance payments
Reports in respect of advance payments and overpayments will be shared with senior managers regularly. The reports will include the number and reasons for the advance payments having been made.