US Payroll - Loans and Advances

Pgm: PYEMPLAA – Employee Loans and Advances; standard Treeview path: US Payroll > Setup > Employees > Loans and Advances

Use this screen to enter any loans or advances taken out by the employee against the company processing payroll. Once a loan or advance has been set up, the system calculates the loan repayment as part of the payroll calculation and withholds the loan amount from the employee's paycheck.

Status

This field is read-only and displays whether the loan/advance is active, paused, or paid out.

Loan

Enter/select the loan/advance code for the employee. These codes must be set up in the Loan and Advances screen (standard Treeview path: US Payroll > Setup > Company > Loans and Advances).

Loan Number

Enter a loan/advance number for tracking purposes.

Start Date

Enter/select the date the repayment calculation of the loan/advance begins.

Loan Amount

Enter the amount for the loan/advance. If no amount is entered, the maximum amount defined on the Company Loan and Advances screen is used as a default.

Number of Periods

Enter the number of periods over which the loan/advance is recovered. If nothing is entered the system defaults the maximum amount defined on the Company Loan and Advances screen.

Interest Rate

Enter the interest rate for the loan/advance. Note that the interest rate entered in this field results in a flat rate calculation. The system defaults the interest rate defined on the Company Loan and Advance screen. To have no interest calculated on the loan amount, leave this field blank.

Installment Principle Amount

This field fills based on the amount of the loan/advance divided by the number of periods entered into the previous field. This amount can be changed as required.

During payroll processing, the system reduces the employee wages by the amount of this field, plus the installment interest amount. Payroll posting then credits the combined amount to the principle account selected on the Company Loan and Advances screen.

Installment Interest Amount

This field fills based on the interest rate multiplied by the installment principle amount. This amount can be changed as required.

Balance Remaining

This field shows the outstanding principle amount of the loan if a balance still exists.

The following fields are used to pause loan payments, such as during an absence period. For more information, please refer to International Payroll - Pro-rate Loans and Advances.

Pause Date, Resume Date

Enter/select a date in the Pause Date field to pause the loan. The loan will not be calculated until the date entered/selected in the Resume Date field is reached.

NOTE: The loan start date, pause date, and resume date can not be on the same date.

Pause Reason

Enter a reason for pausing the loan.

[Show Details] – Button

Loan Details pop-up launched from [Show Details] button

Press this button to launch the Loan Details pop-up, as shown in the screenshot above. This screen displays the loan principal, loan interest, and loan payment amounts by payroll period, as well as the remaining loan balance.