What is a BACS advance (Off cycle payment)?

A BACS advance is an advance of money that has been submitted into your bank account. This money will also be paid in your next payslip although we have provided this directly into your bank account as an advance. As we have provided this amount as an advance of money into your bank account it will show on your payslip as a deduction.

Example:

An employee is due £300 pound in relation to Basic Pay and Overtime.

This should have been paid in January salary although missed the exit date for payroll closedown therefore will not be paid until February.

Payroll submits a BACS advance for £300 paid directly into the employee’s bank account prior to February Payday

February payday comes around and the employee see’s BACS advance deduction for £300 on their payslip. This is due to the fact the Basic pay and Overtime due will also be paid on this payslip. Effectively Payroll has paid £300 twice (Once as a BACS advance and once on February payslip) and deducted it back once (Deduction of BACS advance on February Payslip)