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Dealing with student loans

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If required, Sage 50 Payroll can calculate student loan deductions quickly and easily each pay period, and record this on your employee's payslip.

When to make student loan deductions

For a new employee, you should make student loan deductions if you receive:

• A form P45 with a Y in the Continue Student Loan Deductions box.

• A Starter Checklist with the Yes option selected to say the employee has an unpaid student loan.

  Tip: You can download a Starter Checklist from the HMRC website.

For an existing employee, you should make student loan deductions if the HMRC sends you a Start Notice form SL1.

Tip: You can find out more about student loans from HMRC booklet E17 - Collection of Student loans.

How to apply student loan deductions to an employee

1. Select the relevant employee from the employee list > Employee > Employee Record > Employment.
2. Student Loan section > From > enter the date student loan deductions are to start > Save. Need help? See Student loan details.

3. To return to the payroll desktop > Close.

   Tip: When you use the Enter Payments option to pay your employee, the amount of student loan deducted for the current pay period is shown on the Summary tab. See Paying people.

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