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Managing company loans

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An employee loan is an amount of money given to an employee to be repaid over a period of time. Within Sage 50 Payroll, you can use the loan option to set the total amount due and the rate at which the loan is repaid. You can set up a number of loans at once and give each one a unique description, for example, Season ticket loan.

If you set up an employee loan, the correct amount is deducted every time you process, until the total loan amount has been reached. In addition, you can keep track of amounts outstanding at the beginning and end of each pay period.

How do I do this?

  1. Company > Pay Elements > Loans.

    Any loans that have already been created are shown.

    Tip: You can sort the loans listed in an ascending or descending order by clicking the appropriate column.

  2. To create a new loan > New.

  3. To change the details of an existing loan > select the loan > Edit.

    Note: Changes to a loan assigned to an employee in their record are only stored at a company level. To change the details recorded at an employee level > open the appropriate employee record > Employment > Pay Elements > Loans.

  4. In the boxes provided, enter or amend the details as required.

Loan detailsOpen this section

Option name Description

Description

Enter a description for the type of loan. For example, personal or business.

Loan Amount

Enter the amount loaned to the employee.

Normal Deduction Rate

Enter the amount usually deducted from your employee's salary to repay the loan. If you don't enter a value here, you must enter the amount to deduct when assigning the loan to an employee or when processing the loan in Enter Payments.

Transfer to Sage P11D

Are you using Sage 50 P11D? There may be Class 1A NICs due on the loan provided to the employee. T

To transfer the loan details when importing data from your software into Sage P11D, select this check box. You can then check any liability due to HMRC.
  1. To save your changes > OK.

Your next step:

Assigning Loans to employees

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