PayHero will automatically calculate student loan deductions if an employee has been set-up with a tax code ending in 'SL' such as 'M SL' or 'S SL'. The Student Loan Repayment Pay Item will be added to any applicable employees default pay items and deduct the appropriate amount when they are included in a pay run.
Additional Student Loan Repayments
The IRD may advise that an employee is required to make compulsory repayments in addition to their standard student loan repayments or an employee may choose to increase their student loan repayment amount of their own accord. There are a couple of Pay Items that can account for this.
Student Loan Voluntary Repayment
If an employee wishes to pay an increased amount towards their student loan, add the Student Loan Voluntary Repayment Pay Item into the employee's Default Pay settings and fill in the empty field.
Rate - The fixed amount to be deducted on top of their standard contributions each pay.
Student Loan Underpayment Deduction
If you are required by the IRD to make additional student loan repayments for an employee due to an underpayment that has occurred the Student Loan Underpayment Deduction Pay Item can be used.
Extra Deduction Rate - The extra percentage to be deducted on top of their standard contributions each pay.
Current Balance - The total amount that has been underpaid as stated by the IRD.