Student Loan (SL) repayments come in a bewildering variety of forms, however, all catered for by SmoothPay:
- SL tax codes (note that SL may not be calculated if the employee doesn't earn enough as they much reach a weekly threshold)
- SL tax code with NO SL to be deducted - we recommend using the base tax code as this qualification is simply bizarre
- STC tax code with special rates of tax (incl ACC levy if any) and/or SL (if any) - also in the employee's Tax Settings
- SLCIR ordering the employer to deduct additional SL until the amount in arrears is paid (or until a new order is issued) - you can find this in [Tax..SLCIR]
- SLBOR where the employee wishes to make voluntary additional SL payments until stopped or an amount is paid off - you can find this in [Tax..SLBOR]
Do not add student loan repayments as you would a deduction - these payments have special significance for IRD schedule reporting and must be set up as provided for in SmoothPay.
SLCIR
If you receive a letter from IR containing something similar to the following...
then it needs to be set up in Staff..Tax..SLCIR as follows:
and make the following entries:
Note, the employee actually still needs to earn above the Student Loan repayment threshold to actually have any additional deductions made. These deductions will appear separately on the employee's payslip and in payday reporting.
SLBOR
This option is for additional voluntary contributions being made by an employee and provides the same options as SLCIR.
* end *