What to do with an open advance balance at year-end

You have three options if an employee had an open advance balance at the end of the year.

• If the open advance balance is considered employee income and is subject to withholding, add an income code and reportable amount (amount of the advance still open) to the original advance record in Reportable Income Adjustment (AP45.1). Include the advance record when you perform reportable income processing.

• Have the employee return the unused advance amount and specify the amount as a cash payback to zero-out the outstanding balance.

• Do nothing. The open advance balance will remain in the system for future use.