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Employee advances and loans

By Scavi Company · · 3 min read
Employee advances and loans

A clear policy helps employees in need without creating problems.

Policy

Written rules.

Limits

Amounts and frequency.

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Agreements

Signed.

Repayment

Clear schedule.

Wage laws.

A closer look

Technicians face car repairs and family emergencies. Owners want to help, but informal loans create confusion and resentment. A simple policy with limits and written agreements protects everyone.

Where to start

Write a short advance policy and review it with a payroll professional.

An example

A company created a policy allowing one advance per year with a signed repayment schedule. Requests became fair and simple.

Common mistakes

Informal loans, unequal treatment and illegal deductions.

What to track

Track advances outstanding.

Questions to ask

What limits are fair? Who approves? Does our policy follow state law?

Price every call so it pays.

We help service businesses set clear policies, book better jobs and turn more calls into profitable work.

Frequently asked questions

Can a company deduct a loan from an employee's paycheck?

Rules vary by state and wage laws. Written authorization is usually required, and deductions cannot reduce pay below legal minimums. Check with a payroll professional.