Configure Advance Pay

You can configure time off policies so that employees can request vacation payouts prior to starting their vacation.

Employees request advance pay at the same time that they request vacation. If the Advance Pay request threshold in the time off policy has been met, the Advance Pay checkbox appears when employees request time away from work. In the Advance Pay section, employees can select No or Yes under Request Pay Advance to indicate whether they’d like advance pay for the time away request. Dayforce automatically calculates the maximum payout employees can receive by multiplying their pay rate by the number of hours that they requested. It appears in the Pay Amount field. To request a lower payout so that they still receive partial pay during their vacation, employees can enter the amount in the Pay Amount field. However, if the Pay Amount View Only checkbox is selected in the time off policy, this field is view-only and the employee can’t edit it:

Note: Employees can’t request an amount that exceeds their maximum amount.

The payout occurs in the form of a pay adjustment for each day of vacation. Dayforce automatically determines whether advance payouts occur one or two pay periods ahead based on the dates of the employee’s vacation and the date on which the time away request was submitted. If the request is made two pay periods in advance of the cutover date for that pay period, Dayforce processes and pays out the amount two pay periods in advance. However, if the request is made in the last week before the vacation begins, the payout is made one pay period before the vacation. Usually advance payouts are made two pay periods in advance. The only time advance payouts are made one pay period in advance is for last-minute time away requests.

During the employee’s vacation, Dayforce claws back the vacation pay that the employee would normally receive, had they not elected to take an advance payout:

When employees request a payout that’s lower than the maximum, Dayforce claws back only enough of their vacation pay to cover the payout. For example, if the employee in the example above requested only a $200 payout, Dayforce would claw back one full day of vacation pay, plus $92 of the second day:

To configure Dayforce for advance payouts:

1. Go to Time Away From Work > Time Off Policy.
2. In the left side panel, select the time off policy that you want to modify.
3. Go to the Advance Pay section.
4. In the Advance Pay request threshold field, enter the number of days within the approval day for the applicable pay period that employees can still make advance pay requests. For example, enter 3 and employees can’t make requests later than three days before the approval date for the last pay period before their vacation.
5. In the Minimum Number of Consecutive Vacation Days field, enter the minimum number of consecutive vacation days that employees must request to be eligible for advance vacation payouts. For example, enter 5 and employees requesting only four consecutive days of vacation aren’t eligible for advance vacation pay.
6. In the Advance Pay Type drop-down list, select By amount, or leave the setting blank to award advance pay as an amount.
7. Select the Pay Amount View Only checkbox to turn off the ability for employees to edit the advance pay amount calculated by the system and shown when they’re creating the time away request.
8. In the Advance Pay Period drop-down list, specify the number of pay periods that Dayforce can pay employees in advance when they request time away. Select 1 and employees are paid one period in advance. Select 2 and employees are paid up to two pay periods in advance, depending on when the employee created the time away request.
9. Note: For new time off policies, the Advance Pay Period setting is set to 1 by default.
9. Click Add, and configure the pay codes that will grant advance payout, as follows:

10. Advance payout pay code settings

    Setting	Description
    Pay Adjustment Code (required)	Select the pay code that employees must select if they want an advance payout when requesting time away from work. For example, with Vacation - Advance Pay selected in this drop-down list, employees would have to select Vacation - Advance Pay in the Reason drop-down list when adding a new request for time away from work.
    Advance Adjustment Pay Code (required)	In this drop-down list, select the pay code that Dayforce shows in the employee’s timesheet when they receive their payout. Note: This must be a pay code configured in Pay Setup > Pay Code with the Is Read Only checkbox selected. If no pay codes are configured as read-only, this drop-down list is empty.
    Claw Back Adjustment Pay Code (required)	In this drop-down list, select the pay code that Dayforce shows in the employee’s timesheet when their vacation pay gets clawed back. Note: This must be a pay code configured in Pay Setup > Pay Code with the Is Read Only checkbox selected. If no pay codes are configured as read-only, this drop-down list is empty.
    Applicable Rate	In this drop-down list, select a different rate type for each pay code. These rates correspond with the rates defined in the employee’s HR profile. If the selected rate isn’t configured, Dayforce uses the Job Rate value instead. If the job rate isn’t configured, Dayforce uses the Base Rate. For example, if you select Vacation Rate in the Applicable Rate column, Dayforce uses the rate set in the Vacation Rate field in the Employment Status tab of the Employment > Employment Settings screen in People. If the Vacation Rate isn’t configured, Dayforce uses the Job Rate. With no Job Rate, Dayforce uses the Base Rate. If you don’t select a rate in the Applicable Rate drop-down list, Dayforce uses the Balance Holding Rate value instead (if configured). Note: If both the Applicable Rate and Balance Holding Rate fields are configured, Dayforce uses the Applicable Rate value to calculate advance pay. However, if both fields reference the same rate, the Balance Holding Rate column is respected. If neither the Applicable Rate field nor the Balance Holding Rate field are configured, Dayforce uses the Job Rate value instead. If the job rate isn’t configured, the Base Rate, and then the Vacation Rate values are used, by default.
    Balance Holding Rate	In this drop-down list, select the entitlement balance that Dayforce uses when calculating the advance pay rate for employees. Dayforce uses the rate from this balance to calculate the maximum amount awarded for the advance pay.

10. Click Save.