Set up a reimbursement pay

Set up a pay ID for the loan payment to the employee.

1. Go to Payroll, Setup, Pays.
2. Enter a Pay ID and description for the loan payment.
3. From the Pay Type drop-down list, select Reimbursement.
4. Enter the applicable Expense Account and Printed Desc information.
5. Click Save and Close.

Set up a deduction

Set up a deduction for the loan repayment from the employee. If you have already set up a deduction for a loan or advance, skip this step.

1. Go to Payroll, Setup, Deductions.
2. Enter a Deduction ID to use for the loan repayment.
3. Enter a description and then press the TAB key.
4. In the Deduction type box, select Normal.
5. Select the Retain YTD totals at close year check box.
6. Enter a Printed desc and Liability account. These fields are optional.
7. For the Calc method, select Flat amount.
8. Click Save and Close.

Add the deduction to the employee setup

Customize the deduction for each employee.

1. Go to Payroll, Setup, Employees.
2. Click List, select the Employee, and then click OK.
3. Press the TAB key twice and then click Deducts.
4. Click List, select the Deduction ID that you created for the loan, and then click OK.
    NOTE: If the employee has an existing loan deduction listed, you can choose to update that line instead. 
5. Enter the applicable information.
   1. Select the Calc method to use for this employee, if it differs from the default on the deduction.
   2. In the Amount box, type the flat amount or percentage for the repayment.
   3. Select the Auto check box to have the deduction taken automatically when you process payroll.
   4. Select the Calc Frequency.
   5. Type the total loan amount in the Limit box.
   6. For the Limit Period, select No Period.
6. Click Accept line, and then click Accept table.
7. Click Save and Close.

Issue the loan payment to the employee

Issue a check to the employee for the amount of the loan using the reimbursement pay ID you created.

Process loan repayments from the employee

The deduction calculates automatically on the employee's checks.