Solution Properties
Solution ID:
200427112158251
Last Modified Date:
Wed Sep 18 09:40:58 UTC 2024
Taxonomy Path:
Case category//How do I...//processing
Author:
[email protected]
Set up employee loans
Description

If you give an employee an amount of money to repay over a period of time, use the loan option to record this.

This deducts the amount directly from their net pay. You can then set the total amount due and the amount the employee will pay each period, until they reach the total loan amount. You can also check amounts outstanding at the beginning and end of each pay period.

Cause
Resolution

Table of Contents

Set up a loan

  1. Double-click the required employee, then click the Employment tab.
  2. Click Pay Elements, then click Loans.
  3. On the next available line, click the Description finder button, then click New.
  4. Enter the following information:

    ReferenceThis number appears automatically and you can't edit it.
    DescriptionEnter the loan name.
    Loan AmountEnter the total amount of the loan.
    Normal Deduction RateEnter the amount to deduct per pay period.
    Transfer to Sage P11DIf applicable, select this check box if you want to transfer the loan information to your Sage P11D software.
  5. Click OK, then confirm the date in the Start Date box is correct.
  6. Click Save, then click Close.

Set up a partly repaid loan

You can also set up the remainder of a loan that an employee has already partially paid. Use our guide to set up a partly repaid loan.

Assign a loan to an employee

After you create an employee loan, assign it to the relevant employee. Use our guide on how to assign a loan to an employee.

Process a loan

Once you've set up an employee loan, process it as part of your pay run. Use our guide to process employee loans.

Stop a loan repaid early

Once you've set up a loan for an employee, if they pay it off early, you can stop it. Use our guide to stop a loan repaid early.

Change the total amount due for a loan

You can't change the total amount for a loan. Instead, write off the current loan and set up a new loan. Or, if you haven't updated the employee, delete the loan and set up a new loan with the correct value.

Delete a loan

When an employee pays back a loan or you write it off, you can delete it. Use our guide to delete a loan.

Write off a loan

If you need to, you can write off a loan.

Change a loan deduction rate

If required, you can edit the deduction amount of a loan. Use our guide to change a loan deduction rate.

Payslip layouts that display loans

Not all payslip layouts in Sage 50 Payroll include loans. Use our guide to find the payslip layouts with loans.

Re-fund a loan

If you've processed a loan by mistake, it's simple to resolve. Use our handy How do I correct an employee loan? guide to do this.

Error: The loan NDR cannot be greater than the loan amount

If you see this error, this means the Normal Deduction Rate of a loan is greater than the loan amount.

Check all loans in the employee's record, as old loans cause this error when you add a new loan.

[BCB:131:Limitless - 50 Payroll - Employees:ECB]
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