Summary

The Repayment Details tab page:

• Records information about repayment of the employee's loan.
• Should be completed in conjunction with the Loan Details tab page.

Viewing all loans

All employee loans in your organisation can be viewed by navigating to the Employee Loans makeup table.

Fields

Repayment begin date:

This is the date that repayments will start. Remember to take note of pay period dates.

Repayment amount:

The dollar value that an employee has agreed to repay each pay period.

Note: On the Deductions - Details (iii) tab, if Calculation method is a value, such as 'P. Percentage of gross' or 'S. Percentage of standard earnings', then you could enter the percentage of gross pay. However, if you enter a rate, then some deductions may be reduced because this repayment amount could affect an employee's minimum net pay calculation.

Deduction:

This links the reducing balance loan to a Deduction code which will be used in transactions. An error message displays if the deduction selected is not a reducing balance loan deduction.

If you change the Deduction field to a valid, non-blank value, and the selected deduction has Direct credit = "Yes", you can opt to copy bank details from the Deductions | Details (iii) tab to the Employee Loans | Bank Details tab.

If Company Settings has Country = "NZ" and the deduction Calculation method = "A. Arrears payment", the employee's IRD number is copied into the Employee Loans | Bank Details tab | Bank particulars field.

Protected earnings:

You can define the minimum nett amount that an employee must receive after this loan repayment is applied to their pay.

For example, an employee's nett pay is $300 and the loan repayment amount is $200. However, the Employee Loan record has Protected earnings = $150 so the employee's final pay is $150, not $100.

In this example, if the deduction defined in the Employee Loan record had Full amount only = "Yes" (Deductions - Details (ii) tab), then nothing would be deducted from the employee's pay. The employee's final pay would be $300 because processing cannot deduct the full amount without going below the protected earnings level.

You can also specify a protected earnings amount on the Deductions - Details (i) tab. However, the value defined in the Employee Loans record overrides the value in the Deductions record.

Court orders usually set protected earnings as a weekly amount. It is more convenient to define the Protected earnings value in the Employee Loans record than the deduction. The employee is attached to a pay period, such as weekly or fortnightly, so you can scale the Protected earnings value accordingly. For example, if the court set protected earnings at $150 per week and the employee was paid fortnightly, their Employee Loans record would have Protected earnings = $300. If you set the protected earnings value in the deduction, you would have to set up a Deductions record for every variation in the protected earnings value. However, if your protected earning is a percentage value, you need to set the percentage on the Deductions record|Minimum nett pay field, and leave this Protected earnings field zero.

Total deducted:

The balance of the total amount that has been deducted from the loan. This value is system-generated, but it can be edited to take account of extra payments made by an employee.

Date of last deduction:

This is the last pay period when a repayment was deducted (system generated).

Amount of last deduction:

This is the amount of the repayment deduction on the date above (system generated).

Balance:

The remaining balance of the loan (system generated).