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How do I calculate student loan repayment and payment pay code

1) How can I confirm that the correct tax amount is calculated (i.e. MSL - student loan)

I am attempting to finalise the details for my employee who is also repaying a student loan. In the setup page, I have entered into the employee details - tax code to reflect this, i.e. MSL.   I am now in the payroll tab and entering these details.  When I attempt to view the details (by clicking on 'editing' the employees details) I have manually selected 'tax' to bring up tax payment,(this shows a set figure i.e. $xx. BUT I also that there is a tab titled 'student loan repayment' however, there are no values (i.e. $0.00) that appear in this box.  Does the amount that appears for the 'tax' already include the student loan component? Or do I need to edit additional details in the 'student loan repayment' tab.  

 2) Payment pay code   Also when I attempt to close the employment details page, there is a box that states 'this pay doesn't include a payment pay code, am I sure I want to continue?'  What does this refers to? (does not show up in the help menu).  I'm not sure if I've made a mistake.

Analosaulugia Answered

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  1. When you add a new employee and select a student loan Tax Code e.g. M SL, FlexiTime automatically adds the Student Loan pay code to the employee's default pay codes. This will then be included in the pay when you create a new pay for the employee.

There is no need to make any other changes. The tab under Employee Setup > Deductions titled Student Loan is only used if the employee is making additional voluntary repayments or if you have received a notice from IRD requiring additional compulsory repayments or a special repayment rate.

  1. It sounds like you have removed the default pay code DC from the employee Default Pay under Employee Setup. FlexiTime creates the default pay codes for an employee based on the information you give it. If you remove default pay codes such as DC, TAX or STLOAN that is when things will start to go wrong. Normally there is no need to remove these default pay codes. Often you may want to add additional pay codes such as Allowances or Deductions that the employee receives each pay day.
Robert Owen 0 votes
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