Student Loan Payment on Extra Pays

Follow

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 earnings up to a little over $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 usually apply, so the student loan is paid on the entire earnings.

Have more questions? Submit a request

Comments

Powered by Zendesk