Find the link to a tutorial video on Escrow Accounts at the end of the article.
Description:
An Alvys Escrow account functions similarly to a savings account, involving deductions in anticipation of upcoming expenses. Its purpose is to reserve a portion of earnings for company drivers or owner-operators, covering various anticipated costs associated with their trucking operations.
These expenses may include :
Insurance
Equipment
Security Deposit
General
Tolls
Plates
2290 Fees
Maintenance
Deposits and withdrawals can be made for company drivers and owner-operators into escrow accounts, either on a scheduled basis or as one-time deductions from their payroll. The system offers flexibility in scheduling these transactions, allowing users to choose based on a calendar, a set number of occurrences, or other customizable parameters.
In instances where one-time expenses are incurred, the system allows for the splitting of expenses, enabling the user to decide whether to deduct the expense from the payroll, the escrow account, or a combination of both.
Escrow account balances are monitored, with support for minimum and maximum limits. If the balance falls below the minimum, the system alerts the user to create a deposit and replenish the balance. On the other hand, if the balance exceeds the maximum, scheduled deposits are modified accordingly.
How it works
Create an Escrow Account
To create an escrow account, the user must first navigate to a company driver or owner/operator profile.
Next, select the "Escrow Account" tab and select the "Add Escrow Account" button.
Fill out the fields displayed in the "Add Escrow Account" pop-up and click the "Save" button.
Escrow Accounts can be edited by selecting the pen icon (only the Min Balance and Max Balance fields can be edited) and deleted by selecting the bin icon.
Add a One-Time Deposit to/Withdrawal from an Existing Escrow Account
To create a one-time escrow deposit/withdrawal, the user must first navigate to a company driver or owner/operator profile.
Select the “Deductions” tab and click the “Add Deduction” button.
Select “Escrow Deposit” or “Escrow Withdrawal” as the transaction type .
Select an existing Escrow Account.
Enter the amount and select a frequency of "Once" with a start date.
Select the “Save” button.
Two deductions will be displayed in the deductions table: one to account for the initial balance of the escrow account and the other to account for the deposit/withdrawal.
After a transaction is conducted on an escrow account, the transactions are recorded in the transactions history table under the escrow account tab. The balances are not reflected until a paystub is generated with the transaction.
Add a Scheduled Deposit to/Withdrawal from an Existing Escrow Account
To create a scheduled escrow deposit/withdrawal, the user must first navigate to a company driver or owner/operator profile.
Select the “Deductions” tab and click the “Add Deduction” button.
Select “Escrow Deposit” or “Escrow Withdrawal” as the transaction type.
Select an existing Escrow Account.
Enter the amount and select a frequency of “Monthly,” “Annually,” “Weekly,” or “Every Statement.”
Enter a recurring date and a start date, then select the “Save” button.
Click the “Save” button.
Split a One time Escrow Deduction
To split a one-time deduction, navigate to the Pay Drivers page and select a driver of choice.
Scroll to the “Deductions/Reimbursement” section.
The split can be done by selecting the '+' icon and creating a one-time deduction, then selecting the split icon beside the deduction created, or the user can choose the “split” checkbox when creating the one-time deduction.
Option 1: Creating the one-time deduction
After creating the one-time deduction, a split icon will appear. From there, the user can split the deduction.
Select the split icon and enter the amount to be taken from the escrow account and the driver paystub. Click the “Save” button.
Once the paystub field is filled out, the other will be calculated automatically.
Option 2:
Select the “+” for Deductions/ Reimbursements
Select the split checkbox and fill in the additional details, then select the “Save” button.
