Change the loan interest

If you add an interest-bearing loan, you can also specify the interest percentage. This can be the statutory interest percentage, or your own interest percentage. In the case of a personal interest percentage, you can also specify whether Profit should calculate any interest advantage and add it to the wage. You can change the interest percentage by adding an interest line with the new percentage and the effective date.

In the case of loans that you repay to a third party (lender), you do not record the interest separately. The repayments on the Repayment tab are the amounts that you pay to the lender.

To change the loan interest:

1. Go to: HR / Employee / Employee.
2. Open the properties of the employee.
3. Go to the tab: Loan.
4. Open the loan properties.
5. Go to the tab: General.
6. Select Calculate interest advantage (economic value) for Calculate additional interest so that Profit calculates any interest advantage and adds it to the employee's wage. For specific loans for which an interest advantage is not taxed in accordance with the fiscal laws and regulations, you select Do not calculate any interest advantage.
7. Go to the tab: Interest.
8. Click on: New. 
9. Enter the start date. Profit will automatically terminate the preceding line on the day before the start date of the new line.
10. 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.

11. 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.

12. 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
13. Profit calculates the interest on the outstanding balance on the end date of the period, thus including the repayment in the current period.

    If the effective date falls in a period that has been approved, then this automatically results in RAE entries.

    Note: 

    The new interest percentage applies from the period of the effective date. If the effective date falls after the first day of a period, then the interest percentage still applies for the entire period.

14. Click on: Finish.