Use this window to record and view details of loan repayments — that is, deductions to be made to an employee’s pay until the outstanding debt is fully recovered.
As with savings payments, these deductions are deducted from the net pay value — that is, after the tax value and other deductions have been calculated. These are not tax-exempt or tax-free deductions because they are subtracted from the net payment value.
Click New to create a record. The Loans window is displayed. Enter the details described below, and click Save to save the details.
Click Edit to edit the details of the selected record.
Type a description for the loan.
Type a reference for the loan.
Type the initial loan value at the start of the repayment period.
Type the repayment value to be deducted in each pay period until the full debt is repaid.
As the loan is repaid, if the proposed loan repayment is greater than the balance, the actual value of the repayment deducted from the employee’s pay is adjusted to be the outstanding balance of the loan.
When you create a loan record, you must type the initial balance. You should set the initial balance to the initial loan value. If you do not set an initial balance, a deduction for the loan is not made when you calculate the payroll for the employee.
This field displays the current outstanding balance of the loan (the amount still to be paid). This is accumulated by the period end process and will ultimately be the value of the very last payment.
The value in this field displays the total of all payments made so far for the selected loan. The period end process accumulates this total as each value is deducted. The addition of repayments so far — that is, the total and the balance, should reflect the initial loan value amount.