1. From the Payroll Setup menu, select 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. Issue a check to the employee for the amount of the loan.

In Payroll, set up a deduction for the loan repayment:
Note: If you have already set up a deduction for a loan or advance, skip this step.

1. From the Setup menu, select 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.
   Note: These fields are optional.
7. For the Calc method, select Flat amount.
8. Click Save, then click Close.

Customize the deduction for each employee:

1. From the Setup menu, select 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.
5. Enter the applicable information.
6. 1. Select the Calc method to use for this employee, if it differs from the default on the deduction set up.
   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.
7. Click Accept line, and then click Accept table.
   Click Save, and then click Close.