What Split Payments Do
Split Payments allow a monthly payment to be divided into an advance payment and a final payment.
For example:
- Advance payment: 40% of gross pay on the 15th
- Final payment: remaining amount at month end
In the common split payment setup, the advance is paid without deductions, and the final payment carries the month's deductions.
When To Use Split Payments
Use Split Payments when:
- A company pays employees an advance mid-month.
- The final monthly pay should include deductions.
- Payroll wants to separate advance and final payment statuses.
- Make Payment V2 split payment settings are enabled.
Setup Requirement
Split Payment must be configured in Payroll Time Setup before it appears as a payroll workflow.
Settings may include:
- Enable Split Payment
- Advance percentage
- Advance pay day
- Final pay day
Practical Example
An employee earns $2,000 gross monthly. The company pays a 40% advance on the 15th and final pay at month end.
Advance payment:
- Gross basis:
$2,000
- Advance percent:
40%
- Advance paid:
$800
- Deductions:
$0 during advance
Final payment:
- Remaining gross:
$1,200
- Monthly deductions are applied to the final payment
- Final net pay depends on taxes and deductions
Basic Steps
- Confirm Split Payment is enabled in Payroll Time Setup.
- Open Make Payment V2.
- Search the monthly pay period.
- Review the split columns or split payment amounts.
- Pay the advance part when due.
- Pay the final part when due.
- Confirm each part shows the correct paid status.
Common Mistakes
- Enabling split payment without setting percentages.
- Expecting deductions to be taken from the advance payment.
- Paying the final part before reviewing deductions.
- Forgetting that split payment applies to Make Payment V2 only.
- Not explaining the split to employees before the first split payroll.
Related Articles
- Payroll Time Setup
- Make Payment V2 Overview
- Bulk Payments In Make Payment V2
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