Student Loan Payment on Extra Pays


Why is my employee's student loan payment considerably more when they get a bonus paid as an extra pay than when they are paid normally?

If an employee has the ME SL tax code, their first $19,000 is excluded for student loan deductions. So for an employee paid weekly, their first $365 does not have student loans deducted.

For extra pays however, this threshold does not apply, so the student loan is paid on the entire earnings.

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