Student loan deductions
ANSWER ID:33693
There may be times when an employee requests deductions from their pay for a student loan. These deductions may be percentage based, a fixed amount, or a combination of both.
In all cases the employee must complete the IR330 form from the Inland Revenue Department (IRD) and give it to their employer to advise which tax code is to be used for taxing their earnings. If applicable, the employee may also provide a form from the IRD advising a Special Student Loan rate.
Let's take you through how to set up a standard deduction, and when to use the SLBOR and SLCIR pay codes. If you've received a letter about varying an employee's student loan repayments, see IRD letter for varying student loan repayment rate (SLCIR).