Add a loan with exempted interest advantage

You add a loan with an untaxed interest advantage. This may be the case, for example if the employee is purchasing an own home.

To add a loan with interest:

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. Select Loan with exempted interest advantage for Type loan.
7. Enter the date of payment.

   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.

8. Select Repayment through deduction for Type of repayment.
9. Select the Generate repayment schedule check box.
10. Enter the start and end date. Profit determines the periodic repayments. The amount displayed is exclusive of interest.
11. Click on: Next.
12. 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.

13. 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.

14. 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.

15. Select Do not calculate any interest advantage for Interest advantage.
16. Click on: Next. 
17. Select the Personnel loan (interest/costs no wage) check box for the tax authority agency at the employee level. There are two options:
    • You are authorised to add an agency line.

      Profit asks if you want to add this agency line. If so, Profit adds an agency line with the same start date as the date of payment of the loan.

    • You are not authorised to add an agency line

      Profit prompts you to add an agency line. Make sure this happens after you have completed adding the loan.

18. 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.

19. Click on: Finish. 
20. 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.