Employee Pay Advances

Discussion in 'Business Operations' started by Darb, Oct 26, 2002.

  1. Darb

    Darb LawnSite Member
    Messages: 182

    What method do you use to document that an advance was paid? Do you have a ledger book or do you have an employee sign something?
  2. Green Pastures

    Green Pastures LawnSite Silver Member
    Messages: 2,457

    No pay advances. It costs enought of keep track of payroll, who's going to pay me to take the extra time to figure it all out and document it. Not a good policy to start. If you do it for one, all will expect it. No, payday is Friday.

  3. bubble boy

    bubble boy LawnSite Bronze Member
    Messages: 1,020

    wouldn't the cheque & bank statement be proof???
  4. Guido

    Guido LawnSite Silver Member
    Messages: 2,087

    a loooong time ago there were some "contract" type forms floating around here for giving loans to employees.

    Personally, unless it was for a really justified reason, I would stay away from the situation. But, if you are going to fo this, I'd say you should definetly make up some kind of form they could sign. Also, if you have a lawyer, I would ask him to write a simple form that could hold up in small claims court if you ever have to go after the money later.

    Good Luck!
  5. landman

    landman LawnSite Member
    from NJ
    Messages: 110

    If I remember correctly we are landscapers and not loan officers.
  6. greenngrow

    greenngrow LawnSite Senior Member
    Messages: 403


    Take it from my experiences and don't start this. No matter how good of worker they are. You have to remember you are the employer and they are the empoyee. Let me ask you a question.

    Have you ever asked a former boss for a loan??? I certainly have not. If I couldn't get it on my own then I went to the bank.
  7. Darb

    Darb LawnSite Member
    Messages: 182

    Thanks for the advice. I will take it. I don't need anymore troubles. Thanks for keeping me straight on this.
  8. LawnLad

    LawnLad LawnSite Senior Member
    Messages: 738

    We pay every other Friday. Never early and never late. The company does not give loans or advances.

    Now - on a personal note, I might choose to loan a guy $5.00 for lunch providing he's going to pay me back. That's another issue.

    I would share with you a theory that someone explained to me... makes sense, and I try to follow it. I digress for a moment...

    "The bubble theory". We each live in our own bubbles - our family is our bubble. You bubble comes first. Everything you do effects your bubble. Concentrate on your own bubble before you worry about someone else outside of your bubble. It's not that you can't be compasionate, but you just have to make sure everything inside of your bubble is "right" before you venture out of it to help others. If things are good - and you can, go outside of your bubble and help those that you feel you can in ways that won't effect your bubble negatively. If things change for the worse in your bubble, stop concentrating on everyone else and go back to focusing on your bubble, and your bubble alone until you can look back outside of it.

    Simple concept - seems easy to follow. But all too often we see people outside their bubbles tyring to help everyone else when their own life could use focus and attention. Usually it's the people trying to escape their own problems out there trying to help everyone else to be a hero.

    This is a little off subject - but it comes to mind when I think about loaning people money. If you can great - just don't let it interfere with your life. Recogize what impact loaning money has - to anyone. Ask yourself... why does this person need the money and are you enabling them? Or will they take that money and make something with it and further themselves as a result of your help/compassion? And lastly, my personal opinion, if you do loan money - charge interest. Not because you're trying to make money, but because it's a business transaction.
  9. Brickman

    Brickman LawnSite Bronze Member
    Messages: 1,249

    Dont start it man. I can tell you it causes problems. I had a guy that could not manage his $ pay check to pay check. Because I am a nice guy (you know what they say about nice guys finishing last, that would be me) I paid him in advance for several weeks. When I put a stop to it, then he was gone. Turned me into labor department, told em a bunch of lies about me, perjured himself to them. Any way when I told my side of the story he shut up and scrammed. They could tell who was lying then.

    It only causes trouble.
  10. bubble boy

    bubble boy LawnSite Bronze Member
    Messages: 1,020

    thinking about it, i've loaned small amounts to one of our guys, but he is my biz partners brother. it was my decision to do so, as far as the partner was concerned he said it was his brothers problem.

    never done it otherwise, and really doubt i would. emergency only.

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