Advances and YTD

Should an Advance be taken out each paycheck under YTD? Say I made an advance of $300; on each paycheck thereafter, my YTD is reduced by $300, dropping my YTD Net Pay. Is this correct?

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$300 is $300
by: Best Business Payroll

If we understand your question, you have taken a one time advance of $300, and it was added to the YTD. With the $300 advance, you now have $300 more than you did before the advance, so YTD should stay the same. If the Advance is already under YTD, when you pay it back it shouldn't be subtracted from the YTD because you already received the $300. When you pay it back, you should simply pay the taxes on it. If you don't pay it now, that's fine, but you will owe it at the end of the year.

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Continuing comment
by: Anonymous

Yes, that's correct, an Advance I only took once.
For instance, if my paycheck is $800, but I got an Advance of $300, my check will be $500. (my pay-stub will reflect $800, with a line stating an Advance of $300, with the new total less taxes. So, when I get my check, the Advance has already been taken out. Now, every check after, under YTD amount, that amount is listed. So, if I took only one Advance the entire year in January, by December, there are a total of 12 YTD Advance amount of $300. Even though I only took one Advance. Is this right? Doesn't seem so to me. Thank you.

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Year To Date
by: Best Business Payroll

So at the end of the year, the amount of the advance in the YTD column is still $300 (not $300 x 12= $3600)? If it's $300, that simply reflects the amount of money for the year that you have taken for an advance. Since the acronym YTD stands for Year To Date, that is exactly what it means: how much you have taken for the year so far.

Unless your YTD says a number other than $300, you are fine.

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YTD Advance
by: Anonymous

Yes, the YTD amount stays at $300 but it is deducted out of my YTD Net Pay EVERY paycheck after until December. There are two columns, one for Current, and One for YTD. Say for pay period January 1-15, I took $300 Advance, (which is deducted from my paycheck, so, it's paid back immediately), I don't cash the check being ahead $300, the $300 is listed under Current and YTD. Come next pay period, under the current column, there is my current hours and wage minus taxes, zero for current net pay adjustments, however in the column next to it, there is a -300 for YTD, and will continue to reflect through December. I just don't see how an Advance lessens my Net Pay. I make what I make, regardless of any Advances, so why I not getting credit for it? There isn't even a total after the taxes taken out. For instance if I made $800, less taxes, shouldn't there be a subtotal line before Advances then a "grand total" of $800 les taxes less Advance? I'm so mad at myself for allowing it to happen ALL of 2010, and finally came across people willing To answer my ?'s for free- thank you! Is it too late to receive reimbursement if found in my favor? Is there a statute of limitations? Thanks!

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File an Amended Tax Return
by: Best Business Payroll

For most instances, the statute of limitations on a federal tax filing is three years. If you believe you have an error such as you describe, you may file an amended tax return for 2010 to properly reflect your real earnings. If you file your own taxes, it is probably worth doing, especially for your own peace of mind since it is obviously still bothering you. If, however, you hire a tax professional to figure and file your taxes for you, you will want to weigh their fee against potential tax savings/refund.

The other thing you should do right away is to speak with the payroll department at your place of employment. They should be able to straighten out any mistakes (and perhaps if they admit error you might ask them to pay your tax professional's bill to re-file. Just an idea).

Best of luck getting it straightened out.

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