ANSWER ID:34933
If you receive a letter from Inland Revenue instructing you to vary the student loan repayment rate of one of your employees, follow these instructions to process the change in Payroll.
The letter received from Inland Revenue will be similar to the following example:
The Compulsory extra deduction rate given on the notice (41.67% in the above example) is relative to the standard student loan repayment rate, not relative to the employee's full wage. For more information, visit the
Inland Revenue website
.
To enter the rate into Payroll
-
In Payroll, go to the Maintenance command centre and click Maintain Employees.
-
Click Select Employee. The Select an Employee window appears.
-
Click the applicable employee then click OK.
-
Click the Compulsory Deductions tab.
-
In the Additional Student Loan Deductions area:
-
Select the option SLCIR (Commission deduction).
-
Enter the Deduction in Default amount. This is the Total amount to recover as advised on the IRD letter. In our example this would be $672.20.
-
Enter the Rate. See above for the calculation to determine this.
-
-
Click Close.
The deduction will now appear on the IR345. The extra deduction will cease automatically once the total amount to recover has been paid.