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There are two circumstances in which an international employee might request an advance.


Salary Advance Payroll Advances

Situation:

You are required to pay many months of rent in advance. Money is advanced and then taken out of your normal salary over the course of several months (since rent is something that is calculated within your monthly salary).

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How this looks on a paystub:

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A: Normal Salary is given and deducted from MTD account.

B: Total advance that was paid*

C: Amount deducted from this month's pay

D: Total amount deducted so far this year (6 months worth)**

*The $4,500 will not deduct from the MTD account at the time of payment. It will deduct over the course of the year, as normal salary is paid.

**If you receive other advances throughout the year, they will be reflected in the YTD amount.


Allowance Advance International Allowance (formerly Bonuses)

Situation:

You have a large expense that you need additional funds to cover, so you request an International Allowance. The amount is more than cash you have on hand or than you can float on a credit card, so you need the funds before the next pay date. So you request your allowance to be advanced.

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How this looks on a paystub:

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A: Amount needed for the car, which was advanced on Oct. 31

B: Total bonus amount, after buffer for taxes were added.

C: Net pay on November 15*

*Even with the tax buffer, the net pay on this check was about $1,000 less than this employee normally nets on payday. Usually when you request a large bonus, you will pay a greater percentage of federal income tax on the bonus and on your normal salary. Depending on other earnings, it is likely you will recoup much of this when filing taxes the next year.