Student Loan Additional Deductions
From April 1 2012, IRD may advise that an employee is required to make compulsory repayments in addition to their standard student loan repayments. This can be added to the employee in FlexiTime in the Student Loan section of the employee's Pay Deductions tab. Enter the Outstanding Amount and the Extra Deduction Rate from the IRD letter.
The Extra Deduction Rate is typically 41.67, which is an extra 5% of the standard 12% Student Loan repayment.
This extra deduction will then be automatically calculated and deducted from the employee's pay using the pay code SLCIR. The payments will stop when the outstanding amount has been repaid, or a final deduction date can be entered.
Student Loan Voluntary Deductions
Your employee may choose to increase the amount of their student loan repayment. To add this to the employee's pay, add the SLBOR (Student Loan Voluntary Repayment) to the employee's default pay codes, and enter the additional amount to be repaid in the rate. This amount will be automatically deducted from each pay for the employee.
Other voluntary repayment pay codes can be added if required, but their code should always begin with SLBOR. For example you could add SLBOR 5% as a pay code with a Rate Multiplier of 0.05 and Use Gross Salary and Wages as Rate ticked. This would deduct an additional 5% from the employee as a voluntary repayment.