SALARY ADVANCE
HR Policy
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Document Number: POL-HRD-BEN-20 / Revision #: 1
Document Owner: Human Resources / Date Last Updated: 08/17/2009
Author: Donna Bauer / Status: Approved and Released
General Description / Procedure / Attachments / Revision History
General Description
Purpose: / At the generosity of Catholic Relief Services and the understanding there may be emergency circumstances that would justify a salary advance, this policy defines under what limited conditions a salary advance may be given.
Emergency circumstances are defined as unforeseen, unplanned and unavoidable events that require an employee to secure funds on short notice that would otherwise have irreparable adverse impact on the employee and/or their family. Financial counseling is strongly recommended through the Credit Union, Employee Assistance Program and other means.
Description: / SALARY ADVANCE
General Guidelines:
1.Two salary advances request is permitted per twelve months (rolling calendar).
2.An employee salary advance may not exceed the net amount of current bi-monthly salary.
3.A Request for Salary Advance will have the approval of the employee’s direct supervisor, Payroll, and the Human Resources Director.
4.Documentation validating the need will accompany the Salary Advance Request form.
5.If the salary advance is approved, it will be forwarded for processing and the check will be generated within two business days of receipt.
6.Salary advances will be recovered in full within 12 pay periods (six months) from the employee’s paycheck.
7.Exceptions to this policy must be approved by the EVP of Human Resources.
In the event of extremely confidential nature, employees may request an emergency advance directly from Human Resources without prior consultation with Supervisor
Scope: / All full-time Domestic (US-based) employees who are not on probation or on a performance improvement plan, nor undergoing disciplinary action, and have no outstanding advances.
Responsibility: / Supervisor, Payroll, Human Resources and Accounts Payable
Procedure
Information: / Employee Responsibilities:
  1. The employee will submit a Request for Salary Advance only when it is necessary to alleviate an unforeseeable emergency.
  2. The employee will submit a completed, signed Request for Salary Advance form to his or her direct supervisor with supporting documentation.
Direct Supervisor Responsibilities:
  1. Supervisor will review and make an initial determination as to the validity and need for the request. Supervisor’s responsibility is to approve only those requests that are consistent with the definition of an emergency
  2. Supervisor will note employee’s previous performance rating
  3. Supervisor will verify that all employee’s timesheets have been submitted and approved
  4. If the request is approved, Supervisor will forward to Payroll for input on employee’s pay status
  5. If the request is denied, Supervisor willreturnto employee indicating reason
Payroll Responsibilities:
1.Payroll will review the Request for Salary Advance based on the employee’s payroll status as follows:
a)Employee has been with the Agency for six months
b)Amount requested does not exceed net of next pay
c)No outstanding balance exists nor more than one request within past 12 months
d)Paid leave balances will be reconciled requiring24 hours respond time. Balances will be noted and if negative leave balances exist
2.Payroll will forward to Human Resources for final approval
Human Resources Responsibilities:
  1. Human Resources Director will review the employee’s Request for Salary Advance for justification
  2. HR Director will verify the validity and need for request rejecting any claims that do not meet the definition of emergency
  3. HR Director will sign, date the request and notify employee. Supporting documentation will be maintained in a confidential file in HR
  4. The approved request will immediately be forwarded to Accounts Payable to generate check within two business days
  5. If the request is denied, the HRDirectorwill immediately return to employee indicating reason
Accounts Payable Responsibilities:
  1. Accounts Payable to generate check within two business days
  2. Accounts Payable will notify employee when check is available for pick up
NOTE: At any time the Agency can rescind this privilege
Attachments
Request for Salary Advance form
Revision History
Revision #: