Pay and repay a loan using Payroll

Complete the payment of the principal sum and the repayments (deductions) using Profit Payroll. Take the following into account:

• Pay out the principal sum

  Profit pays out the principal sum in the period in which the Payment date falls. The Pay pricipal sum in wage processing check box must be selected.

  Profit pays the loan with the salary of the employee. Profit lists the principal sum paid out separately on the pay slip together with the description that you have recorded for the loan on the Remark tab. If the employee has multiple loans, Profit displays one total amount. There is one exception: if there are deviating descriptions per loan Profit does display the amounts per loan.

• Deduct repayments

  Profit deducts the repayments from the net wages based on the repayment schedule. Deductions only take place in periods that have the Repayment through wage processing check box selected. If the repayment schedule does not contain a repayment in a certain period, then Profit Payroll will not apply any deductions.

  Profit lists the repayment and interest separately on the pay slip together with the descriptions you recorded about the loan on the Remark tab. If the employee has multiple loans, Profit displays the total amounts. There is one exception: if there are deviating descriptions per loan Profit does display the amounts per loan.

  If Profit pays out the deduction to a third party, the payment is included in the payment file. The pay slip then contains both the deduction from the net wages and the payment to a third party.

On the Loan tab of the employee, Profit displays the principal sum, the total amount repaid and the balance. If the balance is zero, then the loan has been fully repaid.

If a period line has been repaid, the background in the view changes to green.

Wage components

Each loan type has its own set of wage components. For example, if an employee has two loans of the same type, then for each loan Profit will make separate entries concerning the wage components:

• The Consult salaries function allows Profit to display all entries separately.
• On the pay slip Profit merges the entries for these wage components, so that they only contain total amounts regarding the payment, deductions and interest on the loans. However, there is one exception: if you have recorded different descriptions per loan, then Profit also displays the amounts separately on the pay slip.