Add an interest-bearing personnel loan

You add an interest-bearing loan to the employee. You can pay out the principal sum together with the salary and, for example, from the subsequent period, start deducting the repayments:

• Profit pays out the principal sum in the period in which the date of payment falls.
• Profit withholds the repayments on the basis of the repayment schedule. You can generate this based on a start and end date, and Profit will look up the corresponding periods and determine the periodic repayment amounts. You can adjust the repayment schedule afterwards.

You cannot change the Type loan and Type of repayment fields if the loan contains a repayment that falls in an approved period.

To add an interest-bearing personnel loan:

1. Go to: HR / Employee / Employee.
2. Open the properties of the employee.
3. Go to the tab: Loan.
4. Click on: New.
5. Enter the loan amount in Principal sum.
6. Enter the description.
7. Select Loan with interest for Type loan.
8. Enter the date of payment.
9. Select the Pay pricipal sum in wage processing check box.

   If you select the Pay pricipal sum in wage processing check box, Profit will pay out the principal sum in the period in which the date falls.

10. Select Repayment through deduction for Type of repayment.
11. Select the Generate repayment schedule check box.
12. Enter the start and end date.

    Profit determines the periodic repayments. The amount displayed is exclusive of interest.

    You can also only enter the start date and the repayment amount. Profit then automatically determines the number of instalments and the end date. If there is a residual amount, Profit adds an extra instalment.

    Example: 

    The principal sum is €2,449.00. The employee repays in six instalments of €400.00 and a final instalment of €49.00.

    Enter the start date 01-01-2014 and a repayment of € 400.00. Profit adds a repayment schedule of seven instalments en sets an end date of 01-07-2014.

13. Click on: Next.
14. Select Apply interest based on market-level interest for Interest.

    If an employer uses the 'werkkostenregeling' ('WKR'), you cannot apply the statutory interest rate to a loan. In that case, use the market-level interest rate.

15. Enter the interest rate percentage.

    This percentage is the annual percentage and Profit converts this to a percentage per period on a pro rata basis.

16. Select the method for determining the outstanding balance in Interest calculation.
    • Periodic based on outstanding balance per start date current period

      Profit calculates the interest on the outstanding balance on the start date of the period, thus excluding the repayment in the current period.

    • Periodic based on outstanding balance per end date current period

      Profit calculates the interest on the outstanding balance on the end date of the period, thus including the repayment in the current period.

17. Select the calculation method for the interest advantage.

    If you apply 'WKR' for this employer, you can include the interest advantage as 'eindheffing' (final levy) in the free room. You can read how to apply this in the 'Handboek Loonheffingen'.

    

18. Click on: Next.
19. Don't forget to enter the descriptions for the pay slip.

    If you do not enter the descriptions, Profit will use the wage component descriptions.

20. Click on: Finish.

    If you have entered an interest rate yourself and do not calculate an interest advantage, Profit prompts you to select the Personnel loan (interest/costs no wage) check box for the tax authority agency. If you allow Profit to select this check box, Profit adds a new tax authority agency line with the date of payment of the loan as the start date. However, this only happens if you are authorised to add a tax authority agency line. If not, then the tax authority agency line must be added manually at a later time.

21. If you have specified in the properties of theType loan that you want to add a dossier item, Profit will immediately launch the New dossier item wizard. Now you can generate a loan agreement and save it in the employee's dossier.